What is Brenda’s break-even price for a dozen of eggs? Explain how you found that answer. What is Brenda’s shut-down price for a dozen of eggs? Explain how you found that answer. If the market price of a dozen eggs at the local farmers market is $1.45 per dozen, will Brenda make an economic profit? Explain how you determined your answer.
What is Brenda’s break-even price for a dozen of eggs? Explain how you found that answer. What is Brenda’s shut-down price for a dozen of eggs? Explain how you found that answer. If the market price of a dozen eggs at the local farmers market is $1.45 per dozen, will Brenda make an economic profit? Explain how you determined your answer.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
- What is Brenda’s break-even
price for a dozen of eggs? Explain how you found that answer. - What is Brenda’s shut-down price for a dozen of eggs? Explain how you found that answer.
- If the market price of a dozen eggs at the local farmers market is $1.45 per dozen, will Brenda make an economic profit? Explain how you determined your answer.
Expert Solution
Step 1
It is possible to make money by selling a product, but only after subtracting the expenses of the materials and labour utilised, plus any potential gains or losses from that sale. Explicit and opportunity expenses are deducted from revenues while calculating economic profit.
As an implicit cost, opportunity costs are subject to change based on various assumptions and circumstances.
IMPORTANT
There are two types of economic profit: explicit and opportunity cost.
In business, opportunity costs are the revenues that a company forgoes because of a decision to pursue one alternative over another.
It is not necessary to disclose economic profit for internal analysis.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
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.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education