Marginal Return on Investment O True Channel Returns by Channel Investment False Investment Level SEO -Imal Social Media Posting Social Media Ads Display Advertising Based on the figure above, to maximum this company's profits, as the budget increases, this company should continue to allocate additional funds toward email until the marginal return drops below the returns exhibited by the next channel - paid search at the top of the paid search curve. -Paid Search

Marginal Return on Investment O True Channel Returns by Channel Investment False Investment Level SEO -Imal Social Media Posting Social Media Ads Display Advertising Based on the figure above, to maximum this company's profits, as the budget increases, this company should continue to allocate additional funds toward email until the marginal return drops below the returns exhibited by the next channel - paid search at the top of the paid search curve. -Paid Search

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Desmond works as an accountant making $80,000 per year. He is considering leaving his job to open an artisanal cheese shop. He estimates that he will need to spend $20,000 per year on space, $10,000 per year on supplies and $40,000 per year on staff. The shop will earn will earn $120,000 per year in revenue. Assuming his estimates are accurate, what will Desmond's accounting profit be? Assuming his estimates are accurate, what will Desmond's economic profit be? Please enter your solution without commas, dollar signs, or cents.
Looking at the Table, Profit, Cost and Revenue Functions, Quant is the quantity of output, C(Q) is the Total Cost of production for corresponding quantities of output, R(Q) is the corresponding Total Revenue at each level of output Q, if all output is sold and PRF(Q) is the Total Profit for each corresponding output level. PRF(Q) is calculated as R(Q)-C(Q). Using this information, does the company make its highest profit where R(Q) is highest? a. No, because the highest possible revenue may be at an output level where the cost of output may exceed the revenue generated at that output level. In this problem, the highest profit is at output level 15 Ob. Yes, because there is no way that cost can exceed revenue when revenue is maximized. Cc. No, because the highest possible revenue may be at an output level where the cost of output may exceed the revenue generated at that output level. In this problem, the highest profit is at output level 10 or 12 or in between. Od. Yes, because the…
Increaseing marginal returns means that as the firm expands its output, its: OPTIONS long-run average total cost decreases. long-run average total cost increases. short-run average total cost decreases. short-run average total cost increases.
Consider a small landscaping company run by Mr. Viemeister. He is considering increasing his firm’s capacity. If he adds one more worker, the firm’s total monthly revenue will increase from $50,000 to $62,000. If he adds one more tractor, monthly revenue will increase from $50,000 to $58,000. Each additional worker costs $4,000 per month, while an additional tractor would also cost $4,000 per month. Instructions: Enter your answers as a whole number. a. What is the marginal revenue product of labor? $ The marginal revenue product of capital? $ b. What is the ratio of the marginal revenue product of labor to the price of labor (MRPL/PL)? : What is the ratio of the marginal revenue product of capital to the price of capital (MRPC/PC)? :
Jared values his entrepreneurial skill at $10,000 annually to run a similar type if business if he had not elected to open his own restaurant. The table summarizes his operations for the past year. Total sales revenue $590,000 Employee wages $120,000 Materials $350,000 Interest on loan $5,000 Utilities $10,000 Rent $25,000 Total explicit costs $510,000 6. What is Jared's accounting profit? 7. Find Jared's total implicit costs. 8. What was Jared's economic profit last year?
Ben Hunt operated a farm under the name of S.B.H. Farms. Hunt went to Mollary Bank and Trust and requested a loan to build hog houses, buy livestock, and expand farming operations. The bank agreed to loan S.B.H. Farms $175,000, for which short-term promissory notes were signed by Hunt. At the same time, oral discussions were held with the loan officer regarding long-term financing for the farm operations. No dollar amount, interest rate, or repayment terms were discussed. When Hunt defaulted on the short-term notes, the bank foreclosed on the farm. Hunt counterclaimed for $750,000 damages, alleging that the bank had breached a contract for long-term financing. Was there a valid offer for long-term financing offered by the bank?
The Hokey Pokey, a children's day care center is thinking about changing the nature of its business. It is considering shutting down the day care center, and re-opening their business as an adult night club called the Hanky Panky. The Hokey Pokey currently makes $500 in profits. However, re-opening as the Hanky Panky will increase their profits from $500 to $1500. Friendly's Ice Cream which is currently located next to the Hokey Pokey is concerned because this move would reduce its profits by $1200. This would occur because they lose many of the families who currently come to the restaurant (some of which have their kids in the day care center.) but very few adult night club patrons are looking for ice cream. If no significant bargaining costs exists, does economic theory predict that the efficient outcome will still occur? A) Yes, the Hokey Pokey will change to the Hanky Panky because this gives them the highest profit.…
3. Definition of economic costs Jacques lives in San Francisco and runs a business that sells guitars. In an average year, he receives $711,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $411,000; he also pays wages and utility bills totaling $279,000. He owns his showroom; if he chooses to rent it out, he will receive $1,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Jacques does not operate this guitar business, he can work as a financial advisor and receive an annual salary of $31,000 with no additional monetary costs. No other costs are incurred in running this guitar business. Identify each of Jacques's costs in the following table as either an implicit cost or an explicit cost of selling guitars. Implicit Cost Explicit Cost The wholesale cost for the guitars that Jacques pays the manufacturer The wages and utility bills that Jacques pays The rental income Jacques could…