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Solve
![20. If there are implicit costs of
production
A. O Economic profit will be equal to
accounting profit
B. O Economic profit will be less than
accounting profit
C.
Economic profits will be zero
D. O Economic profit will be more than
accounting profit.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2537ee75-8f5d-4440-9ee3-12a1801788bc%2Fdd517da9-c871-462c-b5b5-d739c767a6f0%2F6nlspr_processed.jpeg&w=3840&q=75)
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- Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?How would an improvement in technology, like the high-efficiency gas turbines or Pirelli tire plant, affect me lung-nm average cost curve of a firm? Can you draw the old curve and the new one on the same axes? How might such an improvement affect other firms in the industry?How does fixed cost affect marginal cost? Why is this relationship important?
- A computer company produces affordable, easy-to-use home computer systems and has fixed costs of 250. The marginal cost of producing computers is 700 for the first computer, 250 for the second, 300 for the third, 350 for the fourth, 430 for the fifth, 450 for the sixth, and 500 for the seventh. Create a table that shows the companys output, total cost, marginal cost, average cost, variable cost, and average variable cost. At what price is the zero-profit point? At what price is the shutdown point? If the company sells the computers for 500, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss. If the firm sells the computers for 300, is it making a profit or a loss? How big is the profit or loss? Sketch a graph with AC, MC, and AVG curves to illustrate your answer and show the profit or loss.What is the diforence between accounting profit and economic profi? A. Economic profit subracts both explicit and implicit costs from total revenue, while accounting profit only subtracts explicit costs. B. Accounting profit only subtracts implicit costs from total revenue, while economic profit only subtracts explicit costs. OC Economic profit only subtracts implicit costs from total revenue, while accounting profit only subtracts explicit costs OD. Accounting proft suberacts both explicit and implicit costs from total revenue, while economic proft only subtracts explicit costs.Marginal cost is the one more unit of a good and opportunity cost of producing increases as production O price that must be paid to consume; decreases as consumption O opportunity cost of producing: decreases as production O price that must be paid to consume; increases as consumption of the good increases.
- l alfa 8-19 am 1. Which of the following remains constant as output increases? * O a. TFC O b. TVC O c. TC d. All of the above Ruepue is $45pleas give ne correct answwrr with explanation and dont use chatGPTThe graph at right shows that the marginal response of cost to the production of skates is A. minimized at point B. O B. constant as production increases. O C. greatest at point A. O D. declining as production increases. O E. increasing as production increases. Costs of Production A B Hockey Skates Produced, Q
- Z0ON COLLEGE learning If a firm's revenues does not cover all its opportunity costs, then: of Select one: a. Normal profit is zero stion O b. Total revenues equal its explicit costs c. Total revenues equal its implicit costs O d. Economic profit is zero PREVIOUS PAGE NEXT PAGE INFO COI MAZOON COLLEGE Learntng- Home Airpo Moodle Log In 133 M S Phc About Us ype here to searchYou own a printing firm. Two of yoursenior managers provide you with advice. Thefirst manager states that your company islosing money for every unit that is printed. Tominimize losses, she advises that you reduceyour production levels. The second managerstates that if your firm sells some more units,the price will cover your increase in costs. Inorder to reduce losses, the second managerrecommends that you should increaseproduction. Explain which manager iscorrect and who is offering the correctadvice?Gains from Trade - End of Chapter Problem Between 2016 and 2017, Nintendo produced 2.3 million NES Classic Edition mini consoles that sold out almost immediately as they arrived at stores. The retail price of the mini console was $59.99. However, if you were to check eBay at the time, you would see that people were buying the units for $250 each from scalpers. a. The price of $250 tells scalpers O they should continue to buy the console at the store and resell it on eBay for a higher price. they should keep the consoles they have already purchased and hang onto to them, as they will be considered antiques someday. they should no longer buy and resell the consoles because the price on eBay is too high to make a profit. b. Upon observing that the only way to obtain the gaming console is to buy it on eBay for $250, a consumer might do which of the following? Select all that apply. Consider buying another type of gaming console that is cheaper. Approach a family member about sharing the…
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