Total Revenues ($) 250 000 Total Costs (S) - wages and salaries |- risk-free return of 2% on owner's capital of $20 000 150 000 400 1500 27 000 8000 30 000 interest on bank loan cost of supplies |- depreciation of capital equipment - additional wages the owner could have earned in next best alternative - risk premium of 4% on owner's capital of $20 000 800 Refer to the above table: a. Calculate the implicit and explicit costs for this firm. Answer: b. Calculate the accounting and economic profit for this firm

Total Revenues ($) 250 000 Total Costs (S) - wages and salaries |- risk-free return of 2% on owner's capital of $20 000 150 000 400 1500 27 000 8000 30 000 interest on bank loan cost of supplies |- depreciation of capital equipment - additional wages the owner could have earned in next best alternative - risk premium of 4% on owner's capital of $20 000 800 Refer to the above table: a. Calculate the implicit and explicit costs for this firm. Answer: b. Calculate the accounting and economic profit for this firm

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

#6
K L Q MPL APL (Q/L) VML (MPL*P) FC VC (L*150) TC 5 0 0 0 0 5 1 50 50 50 50 25 150 175 5 2 125 75 62.5 150 25 300 325 5 3 225 100 75 200 25 450 475 5 4 375 150 93.7 300 25 600 625 5 5 450 75 90 150 25 750 775 5 6 450 0 75 0 25 900 925 5 7 400 -50 57.14 -100 25 1050 1075 5 8 425 -75 53.12 -150 25 1200 1225 5 9 450 -25 50 -50 25 1350 1375 5 10 500 -50 50 -100 25 1500 1525 5 11 525 25 47.7 50 25 1650 1675 Define firm’s fixed costs. Next, what is Firm’s FC in the Table above. Why?
8
A project consists of the following tasks, with task times in weeks. Use the data provided to identify the project's critical path. A, C, F, and G is the project's critical path. B, D, E, F, and G A, C, E, F, and G A, B, C, E, and F Task Preceding Task to B, D, F, and G ABCDEFG None None A B CH L 00 00 3 13 3 7 7 7 1829 tp 20 10 1 & 12
i will 10 upvotes urgent
The table below provides the total revenues and costs for a small landscaping company in a recent year. Total Revenues ($) 250 000 Total Costs ($) wages and salaries 150 000 - risk-free return of 2% on owner's capital of $20 000 400 - interest on bank loan 1500 cost of supplies 27 000 depreciation of capital equipment 8000 - additional wages the owner could have earned in next best alternative 30-000 800 - risk premium of 4% on owner's capital of $20 000 a. Refer to Table calculate explicit costs for this firm? b. Refer to Table calculate implicit costs for this firm? C. Refer to Table, what is the accounting profits for this firm are? d. Refer to Table, calculate he economic profits for this firm?
None
A Company manufactures and sells one product. The product has the following cost and revenue data: Selling price Per Unit (AED) 70 Variable cost Per Unit (AED) 30 Total fixed expenses per month are as follows: Expenses types AED Advertising 257,364 Rent 100,000 Heating 100,000 The company produced and sold 10,000 units during the month and had no beginning or ending inventories. a. What is the break-even value in Dirhams?