The table below provides the total revenues and costs for a small landscaping company in a recent year.Total Revenues ($)250 000Total Costs ($)wages and salaries150 000- risk-free return of 2% on owner's capital of $20 000400- interest on bank loan1500cost of supplies27 000depreciation of capital equipment8000- additional wages the owner could have earned in next best alternative30-000800- risk premium of 4% on owner's capital of $20 000a.Refer to Table calculate explicit costs for this firm?b.Refer to Table calculate implicit costs for this firm?C.Refer to Table, what is the accounting profits for this firm are?d.Refer to Table, calculate he economic profits for this firm?

a. Explicit costs are resulted from the production process or these are direct costs of the…

a. Refer to Table calculate explicit costs for this firm? b. Refer to Table calculate implicit costs for this firm? C. Refer to Table, what is the accounting profits for this firm are? d. Refer to Table, calculate he economic profits for this firm?

a. Refer to Table calculate explicit costs for this firm? b. Refer to Table calculate implicit costs for this firm? C. Refer to Table, what is the accounting profits for this firm are? d. Refer to Table, calculate he economic profits for this firm?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The table below provides the total revenues and costs for a small landscaping company in a recent year.
Total Revenues ($)
250 000
Total Costs ($)
wages and salaries
150 000
- risk-free return of 2% on owner's capital of $20 000
400
- interest on bank loan
1500
cost of supplies
27 000
depreciation of capital equipment
8000
- additional wages the owner could have earned in next best alternative
30-000
800
- risk premium of 4% on owner's capital of $20 000
a.
Refer to Table calculate explicit costs for this firm?
b.
Refer to Table calculate implicit costs for this firm?
C.
Refer to Table, what is the accounting profits for this firm are?
d.
Refer to Table, calculate he economic profits for this firm?

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Question 1 Output (Q) Total Fixed Cost (TFC) Total Variable cost (TVC) 0 100 0 1 100 50 2 100 125 3 100 205 4 100 295 5 100 395 Which of the following is true of marginal costs, based on the data in the table above? 1. Marginal costs are rising throughout the output range shown. 2. Marginal costs are falling throughout the output range shown. 3. Marginal costs are constant
Figure 3. P, Costs 20 15 50 40 30 30 40 45 MR D MC ATC Q
1. Consider a firm with the following cost and inverse demand functions. Cost($) 20 3 Cost Function N 3 quantity Price($) 16 13 30 10 Inverse Demand quantity (a) What are the average costs of producing 1, 2, and 3 units for this firm? (b) What are the marginal costs of producing first, second, and third units for this firm? (c) Does this firm enjoy either economies or diseconomies of scale? (d) What are the profits of producing 1, 2, and 3 units for this firm? (e) When does the firm maximize its profit? Select from producing 1, 2, and 3 units.
3. A firm has fixed cost of $90.00 and variable costs as indicated in the table below. Complete the table. TC AFC AVC ATC MC TP TFC TVC 0 $ 90.00 $ - 1 2 3 4 5 6 $ 90.00 $ 50.00 $ 90.00 $ 90.00 $90.00 $125.00 $ 90.00 $155.00 $ 90.00 $190.00 $ 90.00 $230.00 7 $ 90.00 $275.00 89 8 $ 90.00 $ 330.00 9 10 $ 90.00 $395.00 $ 90.00 $470.00
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Table made necessary for ans
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The difference between accounting profit and economic profit total revenue. O marginal product. O explicit costs. O implicit costs.
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Assume the following cost data are for a purely competitive producer Total Product AFC AVC ATC MC 0 1 $60 $45 $105 $45 2 $30 $42.50 $72.50 $40 3 $20 $40 $60 $35 4 $15 $37.50 $52.50 $30 5 $12 $37 $49 $35 6 $10 $37.50 $47.50 $40 7 $8.57 $38.57 $47.14 $45 8 $7.50 $40.63 $48.13 $55 9 $6.67 $43.33 $50 $65 10 $6.00 $46.50 $52.50 $75 In the table below, complete the short run supply schedule for the firm (columns 1 and 2) and indicate the profit or loss incurred at each output (column 3) 1 2 3 4 Price Quantity supplied, single firm Profit (+) or loss (-) Quantity supplied, 1500 firms $26 $32 $38 $41 $46 $56 $66
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Calculate accounting profit given:- Total revenue = $4500 Explicit cost = $4500