Table Cost.1.2:Loan #1 -Loan #2 -InterestRates$25,000 2.00%$40,000 2.50%Owner's Last Job Wage- $36.000Labor-$8,000$40,000$5,000$200,000O No answer text provided.ONo answer text provided.AmountIngredientsRents-Total Revenue -According to information in Table Cost 1.2, accounting profits is aboutO $80,500O $81.500

Table Cost 1.2: Loan #1 - Loan #2 - Interest Rates $25,000 2.00% $40,000 2.50% O No answer text provided. O No answer text provided. O $80.500 O $81.500 Amount Owner's Last Job Wage - $36.000 Labor $8,000 Ingredients Rents- Total Revenue According to information in Table Cost 1.2, accounting profits is about $40,000 $5,000 $200,000

Table Cost 1.2: Loan #1 - Loan #2 - Interest Rates $25,000 2.00% $40,000 2.50% O No answer text provided. O No answer text provided. O $80.500 O $81.500 Amount Owner's Last Job Wage - $36.000 Labor $8,000 Ingredients Rents- Total Revenue According to information in Table Cost 1.2, accounting profits is about $40,000 $5,000 $200,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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04. In the short run, when the output of a firm increases, its average fixed 000 cost: 000 (a) increases. 001 (b) decreases. (c) remains constant. (d first declines and then rises. 008
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1. Definition of economic costs Shen lives in San Diego and operates a small company selling drones. On average, he receives $727,000 per year from selling drones. Out of this revenue from sales, he must pay the manufacturer a wholesale cost of $427,000. He also pays several utility companies, as well as his employees wages totaling $254,000. He owns the building that houses his storefront; if he choose to rent it out, he would receive a yearly amount of $31,000 in rent. Assume there is no depreciation in the value of his property over the year. Further, if Shen does not operate the drone business, he can work as a blogger and earn a yearly salary of $26,000 with no additional monetary costs, and rent out his storefront at the $31,000 per year rate. There are no other costs faced by Shen in running this drone company. Identify each of Shen's costs in the following table as either an implicit cost or an explicit cost of selling drones. Implicit Cost Explicit Cost The wholesale cost for…
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1. Definition of economic costs Bob lives in Miami and runs a business that sells guitars. In an average year, he receives $793,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $430,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $15,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Bob does not operate this guitar business, he can work as a financial advisor, receive an annual salary of $50,000 with no additional monetary costs, and rent out his showroom at the $15,000 per year rate. No other costs are incurred in running this guitar business. Identify each of Bob's costs in the following table as either an implicit cost or an explicit cost of selling guitars. Implicit Cost Explicit Cost The wholesale cost for the guitars that Bob pays the manufacturer The wages and utility bills that Bob pays The…
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1. Definition of economic costs Jake lives in Detroit and runs a business that sells guitars. In an average year, he receives $723,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $423,000; he also pays wages and utility bills totaling $267,000. He owns his showroom; if he chooses to rent it out, he will receive $2,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Jake does not operate this guitar business, he can work as a financial advisor, receive an annual salary of $20,000 with no additional monetary costs, and rent out his showroom at the $2,000 per year rate. No other costs are incurred in running this guitar business. Identify each of Jake's costs in the following table as either an implicit cost or an explicit cost of selling guitars. Implicit Cost Explicit Cost The wages and utility bills that Jake pays The salary Jake could earn if he worked as a financial advisor The…