Is the firm is a profitable firm.

Question

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Answer 1

Question

Chapter 7, Problem 1.1P

To determine

Is the firm is a profitable firm.

Expert Solution & Answer

Explanation of Solution

The given information:

The quantity is 20,000 units, the price is $15, and the labor cost is $250,000. The capital worth is $400,000 and the rate of return is 7%.

The economic profit or loss can be calculated as follows:

Profit=(Price×Quantity)−Labor cost−(Capital worth×Rate of return)=(15×20,000)−250,000−(400,000×0.07)=300,000−250,000−28,000=22,000

The profit is 22,000.

Economics Concept Introduction

Economic profit: Economic profit refers to the additional profit after subtracting the opportunity cost from the accounting profit.

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Answer 2

Question

Chapter 7, Problem 1.1P

To determine

Is the firm is a profitable firm.

Expert Solution & Answer

Explanation of Solution

The given information:

The quantity is 20,000 units, the price is $15, and the labor cost is $250,000. The capital worth is $400,000 and the rate of return is 7%.

The economic profit or loss can be calculated as follows:

Profit=(Price×Quantity)−Labor cost−(Capital worth×Rate of return)=(15×20,000)−250,000−(400,000×0.07)=300,000−250,000−28,000=22,000

The profit is 22,000.

Economics Concept Introduction

Economic profit: Economic profit refers to the additional profit after subtracting the opportunity cost from the accounting profit.

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Answer 3

Question

Chapter 7, Problem 1.1P

To determine

Is the firm is a profitable firm.

Expert Solution & Answer

Explanation of Solution

The given information:

The quantity is 20,000 units, the price is $15, and the labor cost is $250,000. The capital worth is $400,000 and the rate of return is 7%.

The economic profit or loss can be calculated as follows:

Profit=(Price×Quantity)−Labor cost−(Capital worth×Rate of return)=(15×20,000)−250,000−(400,000×0.07)=300,000−250,000−28,000=22,000

The profit is 22,000.

Economics Concept Introduction

Economic profit: Economic profit refers to the additional profit after subtracting the opportunity cost from the accounting profit.

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Answer 4

Question

Chapter 7, Problem 1.1P

To determine

Is the firm is a profitable firm.

Expert Solution & Answer

Explanation of Solution

The given information:

The quantity is 20,000 units, the price is $15, and the labor cost is $250,000. The capital worth is $400,000 and the rate of return is 7%.

The economic profit or loss can be calculated as follows:

Profit=(Price×Quantity)−Labor cost−(Capital worth×Rate of return)=(15×20,000)−250,000−(400,000×0.07)=300,000−250,000−28,000=22,000

The profit is 22,000.

Economics Concept Introduction

Economic profit: Economic profit refers to the additional profit after subtracting the opportunity cost from the accounting profit.

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Answer 5

Chapter 7, Problem 1.1P

To determine

Is the firm is a profitable firm.

Expert Solution & Answer

Explanation of Solution

The given information:

The quantity is 20,000 units, the price is $15, and the labor cost is $250,000. The capital worth is $400,000 and the rate of return is 7%.

The economic profit or loss can be calculated as follows:

Profit=(Price×Quantity)−Labor cost−(Capital worth×Rate of return)=(15×20,000)−250,000−(400,000×0.07)=300,000−250,000−28,000=22,000

The profit is 22,000.

Economics Concept Introduction

Economic profit: Economic profit refers to the additional profit after subtracting the opportunity cost from the accounting profit.

Answer 6

Chapter 7, Problem 1.1P

To determine

Is the firm is a profitable firm.

Expert Solution & Answer

Explanation of Solution

The given information:

The quantity is 20,000 units, the price is $15, and the labor cost is $250,000. The capital worth is $400,000 and the rate of return is 7%.

The economic profit or loss can be calculated as follows:

Profit=(Price×Quantity)−Labor cost−(Capital worth×Rate of return)=(15×20,000)−250,000−(400,000×0.07)=300,000−250,000−28,000=22,000

The profit is 22,000.

Economics Concept Introduction

Economic profit: Economic profit refers to the additional profit after subtracting the opportunity cost from the accounting profit.

Answer 7

Chapter 7, Problem 1.1P

To determine

Is the firm is a profitable firm.

Answer 8

Expert Solution & Answer

Explanation of Solution

The given information:

The quantity is 20,000 units, the price is $15, and the labor cost is $250,000. The capital worth is $400,000 and the rate of return is 7%.

The economic profit or loss can be calculated as follows:

Profit=(Price×Quantity)−Labor cost−(Capital worth×Rate of return)=(15×20,000)−250,000−(400,000×0.07)=300,000−250,000−28,000=22,000

The profit is 22,000.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Economic profit: Economic profit refers to the additional profit after subtracting the opportunity cost from the accounting profit.

Answer 12

Ch. 7.A - Prob. 1P Ch. 7.A - Prob. 2P Ch. 7.A - Prob. 3P Ch. 7.A - Prob. 4P Ch. 7.A - Prob. 5P Ch. 7 - Prob. 1.1P Ch. 7 - Prob. 1.2P Ch. 7 - Prob. 1.3P Ch. 7 - Prob. 1.4P Ch. 7 - Prob. 1.5P

Is the firm is a profitable firm.

Is the firm is a profitable firm.

Explanation of Solution

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Chapter 7 Solutions