revenues per month 27,000 costs: erchandise sold $ 17,000 cashier, stock, and delivery help 2,500 utilities 800 700 costs $21,000 profit (revenue minus explicit costs) $ 6,000 costs: pwner-manager, 300 hours @ $10 per hour $ 3,000 inventory investment, 10% per year on 1,000 costs $ 4,000 rofit (revenue minus all costs) $ 2,000
revenues per month 27,000 costs: erchandise sold $ 17,000 cashier, stock, and delivery help 2,500 utilities 800 700 costs $21,000 profit (revenue minus explicit costs) $ 6,000 costs: pwner-manager, 300 hours @ $10 per hour $ 3,000 inventory investment, 10% per year on 1,000 costs $ 4,000 rofit (revenue minus all costs) $ 2,000
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
got this initial one incorrect
![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:
$ 3,000
Wages of owner-manager, 300 hours @ $10 per hour
Return on inventory investment, 10% per year on
$120,000
1,000
$ 4,000
$ 2,000
Total implicit costs
Economic profit (revenue minus all costs)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd960bb05-f8e9-458e-8dc8-ba896c5de05d%2F3b0bae7f-8056-4526-a6de-f2489a8c2462%2Fkmhdkq9_processed.png&w=3840&q=75)
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:
$ 3,000
Wages of owner-manager, 300 hours @ $10 per hour
Return on inventory investment, 10% per year on
$120,000
1,000
$ 4,000
$ 2,000
Total implicit costs
Economic profit (revenue minus all costs)
![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?
$ 3,000 8
b. Economic profits per month?
$ 2000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd960bb05-f8e9-458e-8dc8-ba896c5de05d%2F3b0bae7f-8056-4526-a6de-f2489a8c2462%2Fl90hwyc_processed.png&w=3840&q=75)
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?
$ 3,000 8
b. Economic profits per month?
$ 2000
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