Adam operates a small shop specializing in party favors. He owns the build- ing and supplies all of his own labor and money capital. Adam incurs no explict rental or wage cost. Before starting his own bussines Adam earned $1,000 per month by renting out the store and earned $2,500 per month as a store manger for a lrge department store chain. Because Adam use his own money capital, he also sacrificed $1,000 per month interest earned on U.S government treasury bonds. Adam’s monthly revenues from operating his shop are $10,000 and his total monthly expense for labor and supplies amounted to $6,000. Calculate Adam’s monthly accounting and economic profits
Adam operates a small shop specializing in party favors. He owns the build- ing and supplies all of his own labor and money capital. Adam incurs no explict rental or wage cost. Before starting his own bussines Adam earned $1,000 per month by renting out the store and earned $2,500 per month as a store manger for a lrge department store chain. Because Adam use his own money capital, he also sacrificed $1,000 per month interest earned on U.S government treasury bonds. Adam’s monthly revenues from operating his shop are $10,000 and his total monthly expense for labor and supplies amounted to $6,000. Calculate Adam’s monthly accounting and economic profits
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 8SCQ: Automobile manufacturing is an industry subject to significant economies of scale. Suppose there are...
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Adam operates a small shop specializing in party favors. He owns the build- ing and
supplies all of his own labor and money capital. Adam incurs no explict rental or wage
cost. Before starting his own bussines Adam earned $1,000 per month by renting out
the store and earned $2,500 per month as a store manger for a lrge department
store chain. Because Adam use his own money capital, he also sacrificed $1,000 per
month interest earned on U.S government treasury bonds. Adam’s monthly revenues
from operating his shop are $10,000 and his total monthly expense for labor and
supplies amounted to $6,000. Calculate Adam’s monthly accounting and economic profits
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