Table COST11: Monthly Costs, Revenues andOther Information for a BakeryProduct Price (P*) =$8%3DItems Sold (Q*) =%3D1,500Health and Safety Inspection Costs =$140Spouse's Former Wages (as the Owner's Assistant) = $1,500%3D%3DThe Entrepreneur's Former Earning =$1,600%3DHome Delivery Expenses =$400Production Materials Costs$2,450Wages Paid to Workers (wL) =$2,050Rent & Utility Payments =$1,500According to information in Table Cost11 for a competitive firm, accounting and economic profits areandrespectively.$5,260; $2,160O $5,260; $2,060

Total revenue =P*Q=8*1500=12000the total revenue is 12000Implicit cost = given up wages of entrepreneur and spouse=1500+1600=3100Explict costs =costs actually paid =all costs excepts implict costs=140+400+2450+2050+1500=6540Accounting profit =Total revenue - explicit costs =12000-6540=5460Economic Profit =Accounting profit - Implicit costs =5460-3100=2360None of the given options is correct.

Business

Economics

Table COST11: Monthly Costs, Revenues and Other Information for a Bakery Product Price (P*) = $8 Items Sold (Q*) = 1,500 Health and Safety Inspection Costs = $140 Spouse's Former Wages (as the Owner's Assistant) = $1,500 %3D The Entrepreneur's Former Earning= $1,600 Home Delivery Expenses: $400 Production Materials Costs = $2,450 Wages Paid to Workers (wL) = $2,050 Rent & Utility Payments $1,500 According to information in Table Cost11 for a competitive firm, accounting and economic profits are and respectively. O $5,260; $2,160 O $5,260; $2,060

Table COST11: Monthly Costs, Revenues and Other Information for a Bakery Product Price (P) = $8 Items Sold (Q) = 1,500 Health and Safety Inspection Costs = $140 Spouse's Former Wages (as the Owner's Assistant) = $1,500 %3D The Entrepreneur's Former Earning= $1,600 Home Delivery Expenses: $400 Production Materials Costs = $2,450 Wages Paid to Workers (wL) = $2,050 Rent & Utility Payments $1,500 According to information in Table Cost11 for a competitive firm, accounting and economic profits are and respectively. O $5,260; $2,160 O $5,260; $2,060

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Table COST11: Monthly Costs, Revenues and
Other Information for a Bakery
Product Price (P*) =
$8
%3D
Items Sold (Q*) =
%3D
1,500
Health and Safety Inspection Costs =
$140
Spouse's Former Wages (as the Owner's Assistant) = $1,500
%3D
%3D
The Entrepreneur's Former Earning =
$1,600
%3D
Home Delivery Expenses =
$400
Production Materials Costs
$2,450
Wages Paid to Workers (wL) =
$2,050
Rent & Utility Payments =
$1,500
According to information in Table Cost11 for a competitive firm, accounting and economic profits are
and
respectively.
$5,260; $2,160
O $5,260; $2,060

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