Question 6In the circular flow diagram, the HOURS you work for your employer are representedbyyou (a household) selling your labor to the firmyour employer (a firm) paying you wagesa service flowing from your employer to youRevenue flowing from you to the firmQuestion 7You give your friend $5000 in start up capital for her business in exchange for partownership. In the circular flow diagram, this is represented byyou (a household) offering capital to the firmYour friend paying you part of the profitsa service flowing from your friend's firm to youRevenue flowing from you to the firm

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In the circular flow diagram, the HOURS you work for your employer are represented by you (a household) selling your labor to the firm O your employer (a firm) paying you wages a service flowing from your employer to you Revenue flowing from you to the firm

In the circular flow diagram, the HOURS you work for your employer are represented by you (a household) selling your labor to the firm O your employer (a firm) paying you wages a service flowing from your employer to you Revenue flowing from you to the 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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Pat used to work as an aerobics instructor at the local gym earning $35,000 a year. Pat quit that job and started working as a personal trainer. Pat makes $50,000 in total annual revenue. Pat's only out- of-pocket costs are $12,000 per year for rent and utilities, $1,000 per year for advertising and $3,000 per year for equipment. Please enter your answers as whole numbers with no decimal places (ie. 5000 or $5000 not 5000.00 or "Five thousand dollars"). If you want to enter a negative number use a negative sign "-" and do not use parenthesis (ie. -2000 or -$2000 not (2000) or (-$2000)). What is Pat's accounting profit? What is Pat's economic profit? Did Pat make the right decision by becoming a personal trainer? (Yes or No)
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The following production grid shows the relationship between Capital and Labor inputs and the output that can be produced by a firm. Capital Labor 0 1 2 3 4 5 6 7 8 9 0 0 0 0 0 0 0 0 0 0 0 1 0 2 6 14 24 36 42 46 48 48 2 0 6 24 60 120 170 210 240 260 270 3 0 14 60 170 210 240 300 360 420 460 4 0 24 120 210 260 420 560 680 760 820 5 0 36 170 240 420 820 1000 1140 1240 1320 6 0 42 210 300 560 1000 1400 1700 1900 2000 7 0 46 240 360 680 1140 1700 2200 2600 2800 8 0 48 260 420 760 1240 1900 2600 3000 3200 9 0 48 270 460 820 1320 2000 2800 3200 3400 (a) Based on this information use Excel Charts to set up an isoquant map with isoquants representing output levels of 24, 210, 420, and 820 units of output.
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2 You run a business selling used hand tools. The rent on your building is $1400/month. Utilities average $600 month. Your average cost to buy your used hand tools from a wholesaler is $9.5/tool. You spend S0.50/tool to package and individually price them. You have two employees in your store during the opening hours that sell the tools. Each employee gets a salary of $12/hour. Your store is open 10 hours/day, every day of the week. Over the course of a year, this averages out to 30 days'month. The average selling price for a used tool is $22. How many tools per month must be sold to make $4000 profit each month.
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