Profit or loss of a firm

Question

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Answer 1

Question

Chapter 8, Problem 1QFR

To determine

Profit or loss of a firm

Expert Solution & Answer

Explanation of Solution

The profit equation for a firm is −

π = TR- TC

Here, π = Profit

TR= Total Revenue received through sales of output

TC= Total Cost met by the firm

TC comprises of Explicit Costs and Implicit Costs.

Explicit costs are the direct payments made during production process such as wages, rent and raw materials.

Implicit cost means any cost that has already incurred but not compulsorily shown or reported as a different expense. It indicates an opportunity cost which emerges at the time when the firm makes use of internal resources for production purpose.

When TR>TC, the firm earns profit and when TC> TR, it faces loss.

Economics Concept Introduction

Introduction:

Profit is the gap at the total revenue income received through sales and total cost met by a firm in to produce certain level of output. Surplus of total revenue received by the firm over total cost incurred by same the firm indicates profit. On the contrary, Excess of total cost incurred by the firm over total revenue received by the same firm indicates loss.

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corospond to this message. Gross Domestic Product (GDP) represents the total value of all goods and services produced by a country. The news reporter shows excitement because rising GDP signifies positive economic performance. Consumer spending has increased while businesses expand and new job opportunities become available. If the GDP rises, your delivery business will likely handle more packages as consumer purchasing increases. The increase in business activity will lead to more opportunities for your company to generate higher profits. You may need to take action by hiring additional staff and purchasing extra delivery vehicles or finding ways to improve your operation speed and efficiency to meet increased demand.

Please show work / explain how you get answer as well. Thank you!

Answer 2

Question

Chapter 8, Problem 1QFR

To determine

Profit or loss of a firm

Expert Solution & Answer

Explanation of Solution

The profit equation for a firm is −

π = TR- TC

Here, π = Profit

TR= Total Revenue received through sales of output

TC= Total Cost met by the firm

TC comprises of Explicit Costs and Implicit Costs.

Explicit costs are the direct payments made during production process such as wages, rent and raw materials.

Implicit cost means any cost that has already incurred but not compulsorily shown or reported as a different expense. It indicates an opportunity cost which emerges at the time when the firm makes use of internal resources for production purpose.

When TR>TC, the firm earns profit and when TC> TR, it faces loss.

Economics Concept Introduction

Introduction:

Profit is the gap at the total revenue income received through sales and total cost met by a firm in to produce certain level of output. Surplus of total revenue received by the firm over total cost incurred by same the firm indicates profit. On the contrary, Excess of total cost incurred by the firm over total revenue received by the same firm indicates loss.

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Answer 3

Question

Chapter 8, Problem 1QFR

To determine

Profit or loss of a firm

Expert Solution & Answer

Explanation of Solution

The profit equation for a firm is −

π = TR- TC

Here, π = Profit

TR= Total Revenue received through sales of output

TC= Total Cost met by the firm

TC comprises of Explicit Costs and Implicit Costs.

Explicit costs are the direct payments made during production process such as wages, rent and raw materials.

Implicit cost means any cost that has already incurred but not compulsorily shown or reported as a different expense. It indicates an opportunity cost which emerges at the time when the firm makes use of internal resources for production purpose.

When TR>TC, the firm earns profit and when TC> TR, it faces loss.

Economics Concept Introduction

Introduction:

Profit is the gap at the total revenue income received through sales and total cost met by a firm in to produce certain level of output. Surplus of total revenue received by the firm over total cost incurred by same the firm indicates profit. On the contrary, Excess of total cost incurred by the firm over total revenue received by the same firm indicates loss.

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Answer 4

Question

Chapter 8, Problem 1QFR

To determine

Profit or loss of a firm

Expert Solution & Answer

Explanation of Solution

The profit equation for a firm is −

π = TR- TC

Here, π = Profit

TR= Total Revenue received through sales of output

TC= Total Cost met by the firm

TC comprises of Explicit Costs and Implicit Costs.

Explicit costs are the direct payments made during production process such as wages, rent and raw materials.

Implicit cost means any cost that has already incurred but not compulsorily shown or reported as a different expense. It indicates an opportunity cost which emerges at the time when the firm makes use of internal resources for production purpose.

When TR>TC, the firm earns profit and when TC> TR, it faces loss.

Economics Concept Introduction

Introduction:

Profit is the gap at the total revenue income received through sales and total cost met by a firm in to produce certain level of output. Surplus of total revenue received by the firm over total cost incurred by same the firm indicates profit. On the contrary, Excess of total cost incurred by the firm over total revenue received by the same firm indicates loss.

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

Answer 5

Chapter 8, Problem 1QFR

To determine

Profit or loss of a firm

Expert Solution & Answer

Explanation of Solution

The profit equation for a firm is −

π = TR- TC

Here, π = Profit

TR= Total Revenue received through sales of output

TC= Total Cost met by the firm

TC comprises of Explicit Costs and Implicit Costs.

Explicit costs are the direct payments made during production process such as wages, rent and raw materials.

Implicit cost means any cost that has already incurred but not compulsorily shown or reported as a different expense. It indicates an opportunity cost which emerges at the time when the firm makes use of internal resources for production purpose.

When TR>TC, the firm earns profit and when TC> TR, it faces loss.

Economics Concept Introduction

Introduction:

Profit is the gap at the total revenue income received through sales and total cost met by a firm in to produce certain level of output. Surplus of total revenue received by the firm over total cost incurred by same the firm indicates profit. On the contrary, Excess of total cost incurred by the firm over total revenue received by the same firm indicates loss.

Answer 6

Chapter 8, Problem 1QFR

To determine

Profit or loss of a firm

Expert Solution & Answer

Explanation of Solution

The profit equation for a firm is −

π = TR- TC

Here, π = Profit

TR= Total Revenue received through sales of output

TC= Total Cost met by the firm

TC comprises of Explicit Costs and Implicit Costs.

Explicit costs are the direct payments made during production process such as wages, rent and raw materials.

Implicit cost means any cost that has already incurred but not compulsorily shown or reported as a different expense. It indicates an opportunity cost which emerges at the time when the firm makes use of internal resources for production purpose.

When TR>TC, the firm earns profit and when TC> TR, it faces loss.

Economics Concept Introduction

Introduction:

Profit is the gap at the total revenue income received through sales and total cost met by a firm in to produce certain level of output. Surplus of total revenue received by the firm over total cost incurred by same the firm indicates profit. On the contrary, Excess of total cost incurred by the firm over total revenue received by the same firm indicates loss.

Answer 7

Chapter 8, Problem 1QFR

To determine

Profit or loss of a firm

Answer 8

Expert Solution & Answer

Explanation of Solution

The profit equation for a firm is −

π = TR- TC

Here, π = Profit

TR= Total Revenue received through sales of output

TC= Total Cost met by the firm

TC comprises of Explicit Costs and Implicit Costs.

Explicit costs are the direct payments made during production process such as wages, rent and raw materials.

Implicit cost means any cost that has already incurred but not compulsorily shown or reported as a different expense. It indicates an opportunity cost which emerges at the time when the firm makes use of internal resources for production purpose.

When TR>TC, the firm earns profit and when TC> TR, it faces loss.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Introduction:

Profit is the gap at the total revenue income received through sales and total cost met by a firm in to produce certain level of output. Surplus of total revenue received by the firm over total cost incurred by same the firm indicates profit. On the contrary, Excess of total cost incurred by the firm over total revenue received by the same firm indicates loss.

Answer 12

Ch. 8 - Prob. 1QFR Ch. 8 - Prob. 2QFR Ch. 8 - Prob. 3QFR Ch. 8 - Prob. 4QFR Ch. 8 - Prob. 5QFR Ch. 8 - Prob. 6QFR Ch. 8 - Prob. 7QFR

Profit or loss of a firm

Profit or loss of a firm

Explanation of Solution

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Chapter 8 Solutions