Teresa has a shoe factory. She owns the building that the factory is in. If she...
Teresa has a shoe factory. She owns the building that the factory is in. If she rented it out rather than using it to produce shoes she could get $60,000 per year in rent. Teresa has labor costs of $150,000 per year and raw materials cost her $300,000 per year. She pays $75,000 in advertising each year. If Teresa was not producing shoes she could work as a manage at the Nike factory and make $90,000 per year. Teresa used up her savings to start the shoe factory forgoing $25,000 in interest she would have received. a. What are the explicit costs of this factory? b. What are the implicit costs? c. If Teresa has total revenue of $500,000, what is the accounting profit? d. If Teresa has total revenue of $500,000, what is the economic profit? e. If Teresa was a rational producer, should she continue producing shoes? Why or why not?
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Teresa has a shoe factory. She owns the building that the
factory is in. If she...
Rita quit her job as dentist where she earned $150,000/year and converted a house that she...
Rita quit her job as dentist where she earned $150,000/year and converted a house that she owns into a museum for her collection of clocks. Before doing this, Rita had been renting the house out for $20,000/year. Rita hired 2 employees for her museum at a total cost of $50,000/year, and had to pay $10,000/year for utilities. Her museum brought in revenues of $125,000 the first year. Someone even offered her $1,000,000 to purchase her entire collection of clocks. She...
Show me the formulas for explicit cost, implicit cost, accouting profit, and economic profit. Tell me what to do for pr...
Show me the formulas for explicit cost, implicit cost,
accouting profit, and economic profit. Tell me what to do for
problems a-d.
ASSUME THAT YOU OWN AN ENGINEERING FIRM THAT HAS THE FOLLOWING COST AND REVENUE INFORMATION FOR LAST YEAR: ........ -total revenue from operations $650,000 $650, 165,000 -wages of clerks and assistants -$100,000 of your money is invested in the firm; it could earn 5% interest if invested elsewhere (.05 x $100,000) . 5,000 -cost of inventory, supplies, and...
Madelyn owns a small pottery factory. She can make 1,000 pieces of pottery per year and...
Madelyn owns a small pottery factory. She can make 1,000 pieces of pottery per year and sell them for $100 each. It costs Madelyn $20,000 for the raw materials to produce the 1,000 pieces of pottery. She has invested $100,000 in her factory and equipment: $50,000 from her savings and $50,000 borrowed at 10% ( assume that she could have loaned her money out at 10%, too). Madelyn can work at a competing pottery factory for $40,000 per year. The...
Show me the formulas for explicit cost, implicit cost, accouting profit, and economic profit. Tell me...
Show me the formulas for explicit cost, implicit cost,
accouting profit, and economic profit. Tell me what to do for
problems a-d.
CTOWT ASSUME THAT YOU OWN AN ENGINEERING FIRM THAT HAS THE FOLLOWING COST AND REVENUE INFORMATION FOR LAST YEAR: Cre 6 -total revenue from operations $650,000 -wages of clerks and assistants 165,000 -$100,000 of your money is invested in the firm; it could earn 5% interest if invested elsewhere (.05 x $100,000) 5,000 cost of inventory, supplies, and...
Answer all the questions (2pts each question) 1. Lauren runs a chili restaurant in San Francisco....
Answer all the questions (2pts each question) 1. Lauren runs a chili restaurant in San Francisco. Her total revenue last year was $110,000. The rent on her restaurant was $48,000, her labor costs were $42,000, and her materials, food and other variable costs were $20,000. Lauren could have worked as a biologist and earned $50,000 per year. An economist calculates her implicit costs as A) $150,000. B) $63,000. C) $50,000. D) $110,000. 2. Which of the following is an example...
Teresa rents her apartment for $803 per month, utilities not included. When she moved in, she...
Teresa rents her apartment for $803 per month, utilities not included. When she moved in, she paid a $750 security deposit using money from her savings account that was paying 2% interest. Her renter's insurance costs her $73 per year. What are Teresa's total annual costs of renting?
Gita is an auto mechanic and runs a small repair shop. She hires one mechanic at...
Gita is an auto mechanic and runs a small repair shop. She hires one mechanic at $20,000 per year, pays a monthly rent of $5,000 towards the lease of the premises where her repair shop is located, and spends $20,000 per year on materials needed for repairing cars and trucks. She has invested $40,000 of her own savings in heavy equipment (air and strut compressors, brake lathes, heavy-duty lifts etc.) that could earn her $4,000 per year if invested elsewhere....
Maria has opened her own carpentry business. She gave up a job earning $3000 a month...
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This attempt took Question 1 1/1 pts Questions 1 to 5 refer to the following. Mankiw,...
This attempt took Question 1 1/1 pts Questions 1 to 5 refer to the following. Mankiw, page 264, question 2. Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her $50,000 per year job as an accountant. Define opportunity cost. What we give up to obtain an item or engage in an activity What we get...
Show me the formulas for explicit cost, implicit cost,
accouting profit, and economic profit. Tell me what to do for
problems a-d.
ASSUME THAT YOU OWN AN ENGINEERING FIRM THAT HAS THE FOLLOWING COST AND REVENUE INFORMATION FOR LAST YEAR: ........ -total revenue from operations $650,000 $650, 165,000 -wages of clerks and assistants -$100,000 of your money is invested in the firm; it could earn 5% interest if invested elsewhere (.05 x $100,000) . 5,000 -cost of inventory, supplies, and...
Show me the formulas for explicit cost, implicit cost,
accouting profit, and economic profit. Tell me what to do for
problems a-d.
CTOWT ASSUME THAT YOU OWN AN ENGINEERING FIRM THAT HAS THE FOLLOWING COST AND REVENUE INFORMATION FOR LAST YEAR: Cre 6 -total revenue from operations $650,000 -wages of clerks and assistants 165,000 -$100,000 of your money is invested in the firm; it could earn 5% interest if invested elsewhere (.05 x $100,000) 5,000 cost of inventory, supplies, and...
Answer all the questions (2pts each question) 1. Lauren runs a chili restaurant in San Francisco. Her total revenue last year was $110,000. The rent on her restaurant was $48,000, her labor costs were $42,000, and her materials, food and other variable costs were $20,000. Lauren could have worked as a biologist and earned $50,000 per year. An economist calculates her implicit costs as A) $150,000. B) $63,000. C) $50,000. D) $110,000. 2. Which of the following is an example...
This attempt took Question 1 1/1 pts Questions 1 to 5 refer to the following. Mankiw, page 264, question 2. Your aunt is thinking about opening a hardware store. She estimates that it would cost $500,000 per year to rent the location and buy the stock. In addition, she would have to quit her $50,000 per year job as an accountant. Define opportunity cost. What we give up to obtain an item or engage in an activity What we get...
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