Xavier opens up a lemonade stand for two hours.He spends $10 for ingredients and sells $60 worth of lemonade.In the same two hours,he could have mowed his neighbor's lawn for $40.Xavier has accounting profit of________and economic profit of ________.a.$50 $10 b.$90 $50 c.$10 $50 d.$50 $90
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Xavier opens up a lemonade stand for two hours.He spends $10 for ingredients and sells $60 worth of lemonade.In the same two hours,he could have mowed his neighbor's lawn for $40.Xavier has accounting profit of________and economic profit of ________.a.$50 $10 b.$90 $50 c.$10 $50 d.$50 $90
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- Amal quits his job and gives up a salary of $50,000 per year to start software company. During Amal's first year in business, total revenue is $300,000, and his explicit financial costs are $250,000. What is Amal's economic profit from his first year in business? Select one: a. $0 b. $250,000 c. $50,000 d. $300,000Caroline opens a lemonade stand for two hours. She spends $15 for ingredients and sells $50 worth of lemonade. In the same two hours, she could have mowed the neighbor's yard and earned $10. a. What are Caroline’s explicit and implicit costs? b. What is Caroline’s accounting profit? What is her economic profit? Show how you calculated each profit. The government imposes a $1,000 one-time license fee on all pizza restaurants. As a result, which of the following cost curves shift, and why or why not?a. Average total cost.b. Marginal Cost.c. Average Variable Cost.Caroline opens a lemonade stand for two hours. She spends $15 for ingredients and sells $50 worth of lemonade. In the same two hours, she could have mowed the neighbor's yard and earned $10. a. What are Caroline’s explicit and implicit costs? b. What is Caroline’s accounting profit? What is her economic profit? Show how you calculated each profit.
- JYour business has the capacity to produce up to 5 units/week. The table & graph below show average cost (AC) for different weekly production levels. Your objective is to maximize profit each week. Average Cost 22 20 AC 18 1 20 14 2 15 12 3 12 10 1 2 4 4 13 Quantity 15 Your product sells in the market for $21/unit, and you can sell as many units at that price as you can bring to market. You know from your economics training that deciding how much to produce should rely on marginal concepts like marginal cost (MC). So, based on the AC table above, create a table that shows the MC of each unit. (Assume that there are no fixed costs, so total costs are zero if Q=0.) Based on MC for each unit, determine the profit-maximizing quantity to produce and sell. BRIEFLY explain your answer. (Your answer needs to be based on MC and being able to sell each unit for $21.) AC ($/unit)QUESTION 17 Whenever marginal revenues are higher than marginal costs, a. a firm should stop its production in order to maximize profits. b. a firm should decrease its production in order to maximize profits. c. a firm should increase its production in order to maximize profits. d. none of them are correct.Maria's Pizza Shop incurs $800,000 per year in explicit costs and $120,000 in implicit costs. The shop has $1 million in revenues and has $2 million in net worth. Based on this information, what is the economic profit for Maria's Pizza Shop? A. $200,000 B. $80,000 C. $400,000 D. $3 million
- 10. Read this excerpt from the October 18, 2022, Wall Street Journal. KINDERHOOK, N.Y.—Golden Harvest Farms has grown from a small apple-growing operation when Doug Grout’s grandfather opened it after World War II, to a multipronged business that includes a retail stand, cider press, distillery, tasting room and barbecue restaurant. But Mr. Grout said he sees a cloudier future for the business due to new state regulations that will require him to increasingly pay more overtime to the farmworkers who pick his apples in the coming years, raising one of his primary costs. “We were looking to buy another orchard, and that whole thing is tabled,” said Mr. Grout, 52 years old, who co-owns Golden Harvest with his father, as he drove between rows of Honeycrisp trees. “We’re stepping away. You’re going to see farms go out of business. This is very shortsighted.” For the apple market in New York, the new regulations will: Cause supply to shift to the left, leading to higher prices and a…1. The Abner Corporation, a retail seller of television sets, wants to determine how many television sets it must sell in order to earn a profit of $10,000 per month. The price of each television set is $300, the average variable cost is $100, and the fixed costs are $5,000 per month. a. What is the required sales volume for Abner Corporation to earn a profit of $10,000 per month? b. If the corporation were to sell each television set at $350 rather than $300, what would be the required sales volume? c. If the price is $350 but the average variable cost decreased to $85 rather than $100, what would be the required sales volume now?#38 Use the data in the table to find the marginal cost of producing the 6th units of output. Q P TC TR MR MC Profit 0 $5 $9 1 $5 $10 2 $5 $12 3 $5 $15 4 $5 $19 5 $5 $24 6 $5 $30 7 $5 $45 Question 38 options: a) $6.00 b) 4.$30.00 c) $27.00 d) $5.00
- 5. El Sol Inc. produces beach towels. The cost of each towel is $ 4.00 and it sells for $ 10.00 after the markup on its cost. Similar towels sell for $ 8.00. How much should each towel cost you to be able to adjust to the market price and keep your profit margin?QUESTION 8 When the marginal-cost curve lies below the marginal-revenue curve a. the firm cannot improve its profit since revenue is already greater than cost. b. marginal revenue is greater than marginal cost, and the firm should therefore increase production to increase profits. c. marginal revenue is greater than marginal cost, and the firm should therefore decrease production to increase profits. d. marginal revenue is less than marginal cost, and the firm should therefore decrease production to increase profits. e. it is not possible for this firm to increase profits since it is failing to operate at an efficient point.Proctoring Enabled: Quiz 3 Fall 2022 for May Ann C. 8 00:05:57 ! Required information The data are for a firm operating in perfect competition. Output 1 2 3 4 5 6 7 8 Multiple Choice Marginal Costs Average Variable Costs 70 65 60 70 60 50 60 70 80 100 120 60 62 64.3 Saved 70 76.25 Average Costs 200 130 103.3 92.5 88 86 88.6 92.5 Help Save & Exit Submit Use the table above to answer this question. If the market price is $80, what is the profit-maximizing output and will be the firm profit or loss?