Suppose you own a small business. Last month, your total revenue was $7,500. In addition, you paid $2,500 in monthly rent for office space, $300 in monthly rent for equipment, $1,750 to your workers in wages for the month, and $1,800 for the supplies you used that month. f you correctly determine that your economic profit last month was -$200, then it must be true that

Suppose you own a small business. Last month, your total revenue was $7,500. In addition, you paid $2,500 in monthly rent for office space, $300 in monthly rent for equipment, $1,750 to your workers in wages for the month, and $1,800 for the supplies you used that month. f you correctly determine that your economic profit last month was -$200, then it must be true that

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose a feed mill is looking at their total revenue. If they receive $36 per sack of horse feed and $14 per sack of cattle feed, how much will their total revenue change if the mill increased the sacking of horse feed from 10,000 sacks to 20.000 sacks and decreased the sacking of cattle feed from 128,000 sacks to 119,000 sacks O Revenue will increase by $234,000 Revenue will decrease by $400.000 O Revenue will decrease by $184.000 O Revenue will increase by $250.000
Consider total cost and total revenue, given in the following table: In the final column, enter profit for each quantity. (Note: If the firm suffers a loss, enter a negative number in the appropriate cell.) Marginal Cost (Dollars) Total Cost Total Revenue Marginal Revenue (Dollars) Profit Quantity (Dollars) (Dollars) (Dollars) 10 14 13 21 4 17 28 24 35 32 42 42 49 In order to maximize profit, how many units should the firm produce? Check all that apply. 6. In the previous table, enter marginal revenue and marginal cost for each quantity. On the following graph, use the green points (triangle symbol) to graph the marginal-revenue curve, then use the orange points (square symbol) to plot the marginal-cost curve. (Note: Be sure to plot from left to right and to plot between integers. For example, if the marginal cost of increasing production from 1 unit to 2 units is $5, then you would plot a point at (1.5, 5).) 10 Marginal Revenue 00
Our firm produces two products: generators and solar panels. Name five economies of scale you would expect our company to leverage and explain how you would expect the company to leverage them. Our firm’s accountants have put together the following table of costs. Generators Solar Panels Fixed Costs $2 million $2 million Variable Costs $2 million $2 million Revenue $3 million $5 million The accountants have assured us that there are no places to save money. We are at our profit maximizing quantities of each product. We are as efficient as any firm could possibly be. In answering the questions below, do not just say lower costs or increase sales. Explain all your answers. If you cannot explain why you are taking an action, then you are just guessing.
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You are a newspaper publisher. You are in the middle of a one-year factory rental contract that requires you to pay $500,000 per month, and you have contractual salary obligations of $1,250,000 per month that you can't get out of. You also have a marginal printing cost of $0.25 per paper as well as a marginal delivery cost of $0.10 per paper. Instructions: Enter your answers rounded to two decimal places. a. If sales fall by 20 percent from 1,000,000 newspapers per month to 800,000 newspapers per month, what happens to the AFC per newspaper? AFC per newspaper (Click to select) v from $ to $ b. What happens to the MC per newspaper? MC per newspaper (Click to select) v c. What happens to the minimum amount that you must charge to break even? It (Click to select) v from $ to $
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Suppose that a small hair styling salon had revenues of $200,000 in a given year. The owner spent $15,000 on utilities, $72,000 on supplies (shampoo, conditioner, hair coloring and other chemicals, etc.), and $60,000 on equipment (mirrors, chairs, scissors, curling irons, etc.), including maintenance. The owner could have earned $70,000 working at another salon. A) What is the accounting profit for the hair styling salon? B) What is the economic profit for the hair styling salon? C) What would revenue have to be for the owner of the hair styling salon have to be for him to earn an economic profit of $10,000.
If a Prof leaves their $100,000 per year job to start a business that earns annual revenue $400,000, and has annual labour and rental costs of $200,000, the economic profit of the business is $200,000. True or false and explain why. Use graphs if needed.
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I need help with this problem for business calculus. The revenue given is R(x)=275(0.974)^2x+1 I have to find the marginal revenue when 150 computers are sold and interpret the answer in a sentence. I know that I have to find the Marginal revenue function and I think it's -14.48918*0.974^2x+1 but I'm not 100% sure. I also need some clarification if I need to plug 150 into x to get the marginal revenue for 150 computers sold. Please help, thank you!
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)? :