Calculate the accounting profit.

Question

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Answer 1

Question

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Chapter 3, Problem 1MC

To determine

Calculate the accounting profit.

Expert Solution & Answer

Explanation of Solution

Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue. The revenue can be calculated as follows:

Revenue=1000×15×30=450000

Thus, the revenue is $450000. The explicit cost is given as $150000. Therefore, the accounting profit can be calculated as follows:

Accounting profit=Revenue−Explicit cost=450000−150000=300000

The accounting profit of the firm is equal to $300000. Thus, option ‘a’ is correct.

Economics Concept Introduction

Accounting profit: Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue.

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A firm operates with the production function Q = K2 L. Q is the number of units of output per day when the firm rents K units of capital and employs L workers each day. The manager has been given a production target: to produce 8,000 units per day. She knows that the daily rental price of capital is $400 per unit and the wage rate is $200 day. a. What is the returns to scale of this production function? Show mathematically. b. Currently the firm employs 80 workers per day. What is the firm’s daily total cost if it rents just enough capital to produce at its target? c. Compare the marginal product per dollar spent on K and on L when the firm operates at the input choice in part (b). What does this suggest about the way the firm might change its choice of K and L if it wants to reduce the total cost in meeting its target? Explain your answer very clearly. d. In the long run, how much K and L should the firm choose if it wants to minimize the cost of producing 8,000 units of output a day?…

Answer 2

Question

100%

Chapter 3, Problem 1MC

To determine

Calculate the accounting profit.

Expert Solution & Answer

Explanation of Solution

Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue. The revenue can be calculated as follows:

Revenue=1000×15×30=450000

Thus, the revenue is $450000. The explicit cost is given as $150000. Therefore, the accounting profit can be calculated as follows:

Accounting profit=Revenue−Explicit cost=450000−150000=300000

The accounting profit of the firm is equal to $300000. Thus, option ‘a’ is correct.

Economics Concept Introduction

Accounting profit: Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue.

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Answer 3

Question

100%

Chapter 3, Problem 1MC

To determine

Calculate the accounting profit.

Expert Solution & Answer

Explanation of Solution

Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue. The revenue can be calculated as follows:

Revenue=1000×15×30=450000

Thus, the revenue is $450000. The explicit cost is given as $150000. Therefore, the accounting profit can be calculated as follows:

Accounting profit=Revenue−Explicit cost=450000−150000=300000

The accounting profit of the firm is equal to $300000. Thus, option ‘a’ is correct.

Economics Concept Introduction

Accounting profit: Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

100%

Chapter 3, Problem 1MC

To determine

Calculate the accounting profit.

Expert Solution & Answer

Explanation of Solution

Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue. The revenue can be calculated as follows:

Revenue=1000×15×30=450000

Thus, the revenue is $450000. The explicit cost is given as $150000. Therefore, the accounting profit can be calculated as follows:

Accounting profit=Revenue−Explicit cost=450000−150000=300000

The accounting profit of the firm is equal to $300000. Thus, option ‘a’ is correct.

Economics Concept Introduction

Accounting profit: Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

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Answer 6

Question

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Answer 7

Chapter 3, Problem 1MC

To determine

Calculate the accounting profit.

Expert Solution & Answer

Explanation of Solution

Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue. The revenue can be calculated as follows:

Revenue=1000×15×30=450000

Thus, the revenue is $450000. The explicit cost is given as $150000. Therefore, the accounting profit can be calculated as follows:

Accounting profit=Revenue−Explicit cost=450000−150000=300000

The accounting profit of the firm is equal to $300000. Thus, option ‘a’ is correct.

Economics Concept Introduction

Accounting profit: Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue.

Answer 8

Chapter 3, Problem 1MC

To determine

Calculate the accounting profit.

Expert Solution & Answer

Explanation of Solution

Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue. The revenue can be calculated as follows:

Revenue=1000×15×30=450000

Thus, the revenue is $450000. The explicit cost is given as $150000. Therefore, the accounting profit can be calculated as follows:

Accounting profit=Revenue−Explicit cost=450000−150000=300000

The accounting profit of the firm is equal to $300000. Thus, option ‘a’ is correct.

Economics Concept Introduction

Accounting profit: Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue.

Answer 9

Chapter 3, Problem 1MC

To determine

Calculate the accounting profit.

Answer 10

Expert Solution & Answer

Explanation of Solution

Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue. The revenue can be calculated as follows:

Revenue=1000×15×30=450000

Thus, the revenue is $450000. The explicit cost is given as $150000. Therefore, the accounting profit can be calculated as follows:

Accounting profit=Revenue−Explicit cost=450000−150000=300000

The accounting profit of the firm is equal to $300000. Thus, option ‘a’ is correct.

Answer 11

Expert Solution & Answer

Answer 12

Expert Solution & Answer

Answer 13

Economics Concept Introduction

Accounting profit: Accounting profit refers to the excess revenue after subtracting the total cost from the total revenue.

Answer 14

Ch. 3 - Prob. 1MC Ch. 3 - Prob. 2MC Ch. 3 - Prob. 3MC Ch. 3 - Prob. 4MC Ch. 3 - Prob. 5MC Ch. 3 - Prob. 6MC Ch. 3 - Prob. 7MC Ch. 3 - Prob. 8MC Ch. 3 - Prob. 9MC Ch. 3 - Prob. 10MC

Calculate the accounting profit.

Calculate the accounting profit.

Explanation of Solution

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