oe quits his computer programming job, where he was earing a salary of $70,000 per year, to start his own computer software business in a building that he owns and was previously renting out for $22,000 er year in his first year of business he has the following expenses: salary paid to himself, $40,000, rent, 50, and other expenses, $20,000. Find the accounting cost and the economic cost associated with Joe's computer software business (Enter numeric responses using an indeger) The accounting cost of Joe's business is (Enter your response as an integer)

oe quits his computer programming job, where he was earing a salary of $70,000 per year, to start his own computer software business in a building that he owns and was previously renting out for $22,000 er year in his first year of business he has the following expenses: salary paid to himself, $40,000, rent, 50, and other expenses, $20,000. Find the accounting cost and the economic cost associated with Joe's computer software business (Enter numeric responses using an indeger) The accounting cost of Joe's business is (Enter your response as an integer)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Nina is a farmer that grows and sells tomatoes. Her total explicit and implicit costs are 950000 per year, and her explicit fixed cost are 340000 per year. Nina could otherwise earn 60000 in her next best alternative lone of business or employment. Each bushel of tomatoes sells for $40. This year, nina sold 25000 bushels of tomatoes. What are ninas average fixed costs, average variable costs, and average total costs of production? Interpret what each of these costs mean for nina. What is ninas economic profit? What is her accounting profit?
Gumez runs a small pottery firm he hires one helper at $12,000 per year, pays annual rent of $5,000 for his shop, and spends $20,000 per year on material. He has $4,0,000 of his own founds invested in equipments that could earn him $4000 per year if alternatively invested. He has been offered $15,000 per year to work as a potter for a compertoir. H estimates his entre talent are worth $3000 per year. total annual revenue from pottery sale is #72,000. Calculate the accounting profit and the economic profit for Gomez's pottery firm
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For the firm whose cost curves are shown at right, the minimum efficient scale is OA. about 10 units of production OB. the level of fixed cost corresponding to SRATC₂ OC. about 30 units of production OD. about 50 units of production OE between 30 and 70 units of production. GI Cost per Unit SRATC, SRATC₂ 10 20 SRATC 30 40 50 60 Output per Period 70 SRATC 80 LRAC 90 100
Output TFC TVC TC MC АТС A 25 25 ---- -- ---- -- B 1 25 25 50 25 50 C 2 25 40 65 32.5 3 25 70 95 E 4 25 110 33.75 F 5 25 160 50 What is the total cost at point E? 135 125 185 Cannot be determined
• Calculate TC, AC, MC, AVC, AFC, and graphically shows the calculated and given costs. Quantity Fixed Costs S Variable Costs $ 300 1 300 50 300 90 300 120 300 150 300 190 300 240 300 290 8. 300 350 N3 4 56 70
19) Accounting costs and economic costs differ because A) Economic costs include explicit costs and accounting costs do not. B) Accounting costs include explicit costs and economic costs do not. C) Economic costs include implicit costs and accounting costs do not. D) Accounting costs include implicit costs and economic costs do not. anscribed Text C 20) Megan used to work at the local pizzeria for $15,000 per year but quit in order to start her own deli. To buy the necessary equipment, she withdrew $20,000 from her inheritance (which paid 8 percent interest). Last year she paid $25,000 for ingredients and $500 per month rent but had revenue of $50,000. She asked her dad the accountant and her mom the economist to calculate her costs for her. A) Dad says her cost is $31,000 and Mom says her cost is $47,600. B) Dad says her cost is $31,000 and Mom says her cost is $35,000. Dad says her cost is $9,000 and Mom says her cost is $2,400. D) Dad says her cost is $25,000 and Mom says her cost…
A. Use the SR Cost Table below to compute for the values that corresponds to letters a to e. 9 0 1 2 3 4 5 6 7699 8 10 TFC A. 50 TVC 0 18 38 54 73 94 118. 145 175 207 241 TC AVC ATC/AC MC b. C. d. e. B. Based on the SR Cost Table above, draw, in ONE graph, the MC, AVC, and AC. Please label all axes, coordinates, and curves. Use five (5) coordinates per curve.
2. As an employee of the Rays-R-Us Corporation (a solar panel company), you have been asked to determine the nature of their long-run cost structure. Some cost data has been collected for you and appears in the table below. Quantity of Generators Labor Costs Tools Cost $2 $4 $7 $8 $15 $24 $28 $41 $65 $80 Total Cost Long Run Average Cost $10 12 14 16 20 30 42 1 4 5 8 9 10 70 100 (a) Fill in the missing values in the table. (b) Graph the firm's long-run average cost curve below. (c) Determine the range of output levels over which there exists economies and diseconomies of scale, and mark these ranges on your graph.
A small company holds the total fixed cost of TL 45 and short-run average variable costs as given in the following table Please fill in the rest of the table Output AVC AFC ATC TVC TFC TC MC 17 15 3. 14 4 15 19 6. 29 For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).
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ЕОС 13.5B Morgan took $400 000 out of their savings account to start an ice cream stand. The savings account paid 5% interest. In the first year, Morgan sold 12,000 batches of ice cream at a price of $3 each, and incurred costs of $12,000 which involved outlays of money. What was Morgan's economic profit in the first year?