Homework Help is Here – Start Your Trial Now!
Business
Economics
If the owner of the drugstore hired a manager for $10 an hour to take his place, how much of a change would show up in: Instructions: Enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. Accounting profits per month? b. Economic profits per month?

If the owner of the drugstore hired a manager for $10 an hour to take his place, how much of a change would show up in: Instructions: Enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. Accounting profits per month? b. Economic profits per month?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question

trying to figure this out for understanding

If the owner of the drugstore hired a manager for $10 an hour to take his place, how much of a change would show up in: Instructions: Enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. Accounting profits per month? b. Economic profits per month? %24 %24
Transcribed Image Text:If the owner of the drugstore hired a manager for $10 an hour to take his place, how much of a change would show up in: Instructions: Enter your responses as a whole number. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. a. Accounting profits per month? b. Economic profits per month? %24 %24
Refer to the table below to answer two questions. The table shows the monthly economic profit of a drugstore. Total (gross) revenues per month $ 27,000 less explicit costs: Cost of merchandise sold $ 17,000 Wages to cashier, stock, and delivery help 2,500 Rent and utilities 800 Тахes 700 Total explicit costs $ 21,000 Accounting profit (revenue minus explicit costs) $ 6,000 less implicit costs: Wages of owner-manager, 300 hours @ $10 per hour 3,000 Return on inventory investment, 10% per year on $120,000 1,000 Total implicit costs $ 4,000 Economic profit (revenue minus all costs) $ 2,000
Transcribed Image Text:Refer to the table below to answer two questions. The table shows the monthly economic profit of a drugstore. Total (gross) revenues per month $ 27,000 less explicit costs: Cost of merchandise sold $ 17,000 Wages to cashier, stock, and delivery help 2,500 Rent and utilities 800 Тахes 700 Total explicit costs $ 21,000 Accounting profit (revenue minus explicit costs) $ 6,000 less implicit costs: Wages of owner-manager, 300 hours @ $10 per hour 3,000 Return on inventory investment, 10% per year on $120,000 1,000 Total implicit costs $ 4,000 Economic profit (revenue minus all costs) $ 2,000
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Rational Decisions
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS