Suppose that a business incurred implicit costs of $400,000 and explicit costs of $3 million in a specific year. If the firm sold 100,000 units of its output at $40 per unit, its accounting: A. losses were $600,000 and its economic losses were zero. B. profits were $600,000 and its economic profits

Suppose that a business incurred implicit costs of $400,000 and explicit costs of $3 million in a specific year. If the firm sold 100,000 units of its output at $40 per unit, its accounting: A. losses were $600,000 and its economic losses were zero. B. profits were $600,000 and its economic profits

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Why the classical economists failed to explain the reason of the great depression? What did the…

A: Microeconomics: - it is the study of an individual's behavior of taking various economic decisions,…

Q: Distinguish between implicit and explicit costs and give examples of each. In addition, explain how…

A: Explicit Costs are those costs that are directly observed like the cost involved in hiring labor or…

Q: A firm faces the following costs: total cost of capital = $1,000; price paid for labor = $12 per…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: 5. Explain what is the relationship between marginal cost and average total costs for a firm or…

A: According to economic theory, a product's cost is determined by the total monetary worth of all the…

Q: ADVANCED ANALYSIS A firm faces the following costs: total cost of capital = $2,50O; price paid for…

A: a. TC = $2500 + 100 x $14 + 450 x $4 TC = $2500 + $1400 + $1800 TC = $5700 ATC = TC/Output =…

Q: What are some key fixed and variable costs for this business? Remember fixed costs do not change…

A: Variable costs will be costs that change as the quantity of the great or service that a business…

Q: Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a…

A: Total revenue is the total receipts collected from the sale of goods or service in the market.…

Q: 3. Assume that in the short run a firm is producing 200 units of output, has average total costs of…

A: Fixed cost, conjointly called indirect prices or overhead prices in accounting and political…

Q: Zero economic profit for a firm means _____. (Check all that apply.) a it receives no normal…

A: Total revenue determines the amount earned from the quantity produced.Economic costs involve not…

Q: Chapter 13: Cost of Production Questions: 1. Which is bigger... accounting profit vs. economic…

A: Total cost is the total cost of production, which includes both fixed and variable costs. Marginal…

Q: Why will firms in most markets be located at or close to the bottom of the longrun average cost…

A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…

Q: What are total fixed costs for the Zonker Company? $0 $8 $12 $20 2. The marginal cost to the…

A: Total fixed cost (TFC) is that cost which does not change with change in the level of output.…

Q: At an output level of 100 units a firm has average total costs of $80 and average variable costs of…

A: Total fixed cost refers to cost incurred by a firm in order to acquire the fixed factors of…

Q: A firm operates in the short run with total fixed costs of $8750 and total variable costs related to…

A: Total cost is the sum of fixed cost and variable cost. Total variable cost changes with the change…

Q: Table Cost.1.2: Amount Interest Rate Loan #1 = $40,000 2.50% Loan #2 = $45,000 4.00% Owner's Last…

A: Loans:- The term loan refers to a form of credit vehicle during which an add of cash is given to a…

Q: Confetti Bakery sells bread, cake, and other baked goods. After analyzing their production and…

A: For production of goods and services, firms hire factors of production from the household sector in…

Q: Explain the difference between economic profit and accounting profit.

A: Economic Profit: In economic profit explicit cost is subtracted from revenue. It also include…

Q: Define explicit costs and implicit costs. b. Assume the following: * A firm buys a unit of…

A: Explicit cost is the cost that is incurred for paying external expenses like wages to employees,…

Q: 21

A: Short run production function means where only one factor is variable in nature and other factor…

Q: In this table, the fixed cost of production is:

A: Costs of production, which comprise expenses of many kinds, are incurred during the production of…

Q: Which of the following does NOT represent a fırm's explicit costs? O the firm's total accounting…

A: Explicit cost is the actual monetary expenditure to run a business Implicit cost is the opportunity…

Q: Suppose that a firm produces 100 units a month and sells them all for $5 each. The explict costs of…

A: Here, given information is, Output produced: 100 units Selling price: $5 each Explicit cost: $200…

Q: The table below shows the short-run production function for Michelle's Accounting Company. Number of…

A: Since you have posted a question with multiple sub parts, we will solve first three subparts for…

Q: 4. Given the information that follows: Sales - 750,000, explicit costs 450,000, return you could…

A: Given information:- Sales = $ 750 000 Explicit cost = $ 450 000…

Q: Total Average Fixed Variable fixed variable total Output Costs MC Costs Costs costs costs costs a.…

A: To complete the table given, different formulas are to be used. Total Fixed Cost = 100 (as given…

Q: Can a firm earn an economic loss and an accounting profit at the same time?

A: The measure that depicts distribution of income to owner in a profitable process of production in…

Q: Q45 When a factory is operating at the level of output where its short-run average total cost is at…

A: Short-run average expense (SRATC/SRAC) approaches average fixed expenses in addition to average…

Q: Aphria Corporation listed on the Toronto Stock Exchange (TSX) is producing 1,000 units of output in…

A: It can be defined as a concept that shows the amount of expenditure and any other sacrifice such as…

Q: Suppose that a business incurred implicit costs of $200,000 and explicit cost of$1million in a…

A: The question has been solved below.

Question

Suppose that a business incurred implicit costs of
$400,000 and explicit costs of $3 million in a
specific year. If the firm sold 100,000 units of its
output at $40 per unit, its accounting:
A. losses were $600,000 and its economic losses
were zerO.
B. profits were $600,000 and its economic profits
were $1,000,000.
C. profits were $1,000,000 and its economic
profits were $600,000.
D. profits were $3,600,000O and its economic
profits were $600,000.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

4. The shape of a firm's long-run average cost curve depends o how costs vary with scale of operation. Draw a long-run average cost curve for a firm that exhibits economies of scale, constant returns to scale, and diseconomies of scale. Identify each of these sections of the cost curve and explain why each section exemplifies its specific type of return to scale.
Please answer
Suppose that the firm Smith Co sells 400 blouses per month for $80 per blouse. Roberto, the owner of the business and does not take salary from her business yet. Roberto is a textile engineer by trade and could be earning $ 4800 per month working for a similar firm. The monthly costs of production are as follow: materials: $ 8000 labor: $12800 other: $1600 What is are Smith Co's total explicit costs? $ What is are Smith Co's total implicit costs? $ What is Smith Co's accounting profit? $ What is Smith Co's economic profit? $ ID - -> -
Pls help with what you can really appreciated
If there are no fixed costs and variable costs are constant at $1.00 per unit over the relevant range of output, what is marginal cost when 1 unit of output is produced? a. $0 b. $0.50 c. $1 d. $2
question 28 (Figure) The figure shows the cost curves for a representative firm. At an output level of five units, the average fixed, variable, and average total costs, respectively, would be Cost 180 160 140 120 100 80 60 40 0 012345 A. $120; $66.67; $186.67 B. $40, $80, $120 C. $66.67; $53.33; $120 D.$100; $120; $220 13 14 15 16 Quantity & Moving to another question will save this response. Question 28 of 4.
1. Your cousin Vinnie owns a painting company with fixed costs of $150 and the following schedule for variable costs: Quantity Variable Cost Average Fixed Cost Average Variable Cost Average Total Cost (Houses Painted per Month) (Dollars) (Dollars) (Dollars) (Dollars) 1 15 2 35 3 60 4 90 5 135 6 240 7 480 The efficient scale is houses. ? #2 image : The city government is considering two tax proposals: • A lump-sum tax of $300 on each producer of hamburgers. • A tax of $1 per burger, paid by producers of hamburgers. Which of the following statements is true as a result of the lump-sum tax? Check all that apply. Which of the following statements is true as a result of the lump-sum tax? Check all that apply. Average variable cost will increase. Average total cost will increase. Average…
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