Quantity Total Revenues Explicit Costs Implicit Costs 4. 50 40 10 75 67 15 6. 100 100 20 7. 125 132 25 8. 150 164 30 Refer to the table above. An output level of 6 units results in Select one: O A. normal profits. O B. economic profits of zero. O C. positive economic profits. O D. accounting profits of zero.

Quantity Total Revenues Explicit Costs Implicit Costs 4. 50 40 10 75 67 15 6. 100 100 20 7. 125 132 25 8. 150 164 30 Refer to the table above. An output level of 6 units results in Select one: O A. normal profits. O B. economic profits of zero. O C. positive economic profits. O D. accounting profits of zero.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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6. If a firm's ATC is falling in the long run, then a. it is subject to economies of scale over that range of output b. it is subject to diseconomies of scale over that range of output c. it is subject to constant return to scale over that range of output d. it has reached the minimum efficient scale of production e. both it is subject to constant return to scale over that range of output and it has reached the minimum efficient scale of production are true
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Product Price = Quantity Sold = Explicit Costs Implicit Costs = = $30 5 units $42 $18 Referring to the above table, it can be concluded that: O Economic Costs are $24. O Economic Profit is $210. O Economic Loss is $30. O Economic Profit is $90.
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7. Problems and Applications Q10 Consider the following table of long-run total costs for three different firms: A B Quantity Firm A Firm B Firm C с 1 2 3 4 5 60 70 80 90 100 11 24 39 56 75 21 34 49 66 85 Indicate whether each firm experiences economies of scale or diseconomies of scale. (Note: If a firm experiences economies of scale in one region and diseconomies of scale in another, make sure to select both columns.) Firm Economies of Scale O O 6 7 110 120 96 119 106 129 0 Diseconomies of Scale
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Kindly assist on question 1 and 2 1The difference between zero accounting profit and zero economic profit is that. a) an economic profit of zero indicates a fair return because it includes the opportunity cost of a firms capital. b) an economic profit zero indicates unacceptable rate of return because it does not include the opportunity cost of a firms capital. c) an economic profit of zero indicates more than a fair return because it includes opportunity cost and explicit cost. d) an accounting profit of zero indicates a fair rate of return because it includes the opportunity cost of a firms capital. 2.If a corporation is sued and losses the lawsuit, it's liability to pay. a) is imposed on all stockholders, personally b) is imposed only on the corporate CEO and the board of directors. C) its limited to the assets held in the corporations name. d) is imposed on the bondholders of the corporation
Table 13-12 Quantity 1 2 3 5 6 7 Long-Run Total Cost (Dollars) Firm 1 180 350 510 660 800 930 1,050 Firm 2 120 250 390 540 700 870 1,050 Firm 3 150 300 450 600 750 900 1,050 Firm 4 210 340 490 660 850 1,060 1,290 Refer to Table 13-12. Which firm has constant returns to scale over the entire range of output? a. Firm 1 b. Firm 2 c. Firm 3 d. Firm 4
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