Answered: A firm had sales revenue of $1 million…

A firm had sales revenue of $1 million last year. It spent $600,000 on labor, $150,000 on capital and $200,000 onmaterials. What was the firm’s accounting profit?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 14SQ

See similar textbooks

Related questions

Q: Which firms have diseconomies of scale over the entire range of output? a. Firm 1 b. Firm 2 c.…

A: In the long run, as the inputs are of variable nature, a firm’s expansion activities can either…

Q: Distinguish between implicit and explicit costs and give examples of each. In addition, explain how…

A: Explicit Costs are those costs that are directly observed like the cost involved in hiring labor or…

Q: Distinguish between implicit and explicit costs. How is it possible to have positive accounting…

A: Any cost that has already occurred but is not shown or reported as a distinct item is referred to as…

Q: Which of the following statements is correct? OA Accounting profit is typically larger than economic…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: What are some key fixed and variable costs for this business? Remember fixed costs do not change…

A: Variable costs will be costs that change as the quantity of the great or service that a business…

Q: If a firm is enjoying modest accounting profit but incurring significant economic losses, which of…

A: Here, it is given that a firm is enjoying a high accounting profit, but facing an economic loss.

Q: Define a variable cost and a fixed cost. What causes changes in these costs? Give two examples of…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: If revenues are greater than total variable costs of production but less than total costs, breaks…

A: As the two questions are different so answer is provided to the first question. "Firms/Businesses…

Q: Suppose a firm is producing 1,000 units of output. Its average fixed costs are $100. Its average…

Q: If the firm made total sales of $968 million (mn) in 2020, spent $121 mn on inputs and $52 mn on…

A: Gross margin is the difference between revenue and cost of goods sold, divided by revenue. Gross…

Q: In late 2010 CEMEX company's fourth-quarter loss widened to $574 million, from a loss of $209…

A: In democratic government it has been noticed that there is both public and private sector…

Q: Why can the distinction between fixed costs and variable costs be made in the short run? Classify…

A: There are some costs that will not change as the level of output changes. If the firm wants to…

Q: The following is cost information for the Creamy Crisp Donut Company. Entrepreneur's potential…

A: Accounting cost =Annual lease on building +Payment to workers + Utilities cost…

Q: When the quantity of a variable input is increased from 3 units to 4 units the total output…

Q: The following is cost information for the Creamy Crisp Donut Company Entrepreneur's potential…

A: Explicit Costs or the Accounting Costs refer to the actual monetary payments made during course of…

Q: A firm's economic profit is equal to a. total revenue minus accounting profit. b. accounting profit…

A: Explicit cost is the actual monetary expenditure. Implicit cost is the opportunity cost of doing any…

Q: Which factor of production is almost never included in a firm's fixed costs? Land Labor Capital All…

A: Land, labor, and capital are considered factors of production.

Q: Is the asset's cost basis used in calculating the gain or loss to the firm?

A: Answer - Asset cost basis - It the value of asset which is used for tax purposes .This help to…

Q: 31. Marginal cost is a Total cost per unit of output b. Average total cost divided by the quantity…

A: 31) Marginal costs are defined as a function of the total cost of production, the costs include both…

Q: The following is cost information for the Creamy Crisp Donut Company. Entrepreneur's potential…

A: Opportunity Cost is the sum total of Accounting Cost and Opportunity Cost. Accounting Cost is the…

Q: Indicate how each of the following would shift the (1) marginalcost curve, (2) average-variable-cost…

A: Hi, thank you for the question. As per our Honor code, we are allowed to attempt only the first…

Q: Suppose that a firm produces 400,000 units a year and sells them all for $25 each. The explicit…

A: Answer - Given in teh question- Total production = 400,000 Price per unit = $25 Explicit costs =…

Q: Why can the distinction between fixed costs and variable costs be made in the short run? Classify…

A: Variable costs are the costs of a business and are related to the number of products or services it…

Q: What is the difference between economic profit and accounting profit? What is a normal rate of…

A: As per honor code, we’ll answer only one question at a time , we have answered the first question…

Q: Table 8.5 Output Total Cost 0 15 1 25 2 33 3 40 4 48 5 58 6 70 Refer to Table 8.5. The marginal…

A: Marginal cost is the additional cost incurred in order to produce an additional unit of output.

Q: The following is cost information for the Creamy Crisp Donut Company. Entrepreneur's potential…

A: Explicit costs are those costs that a firm openly acknowledges. To name a few, there are costs…

Q: Calculate the total revenue if explicit costs of the firm are $400 and the accounting profit is $850

A: Given information is :- Explicit costs = $400 Accounting profit = $850 We need to find the value of…

Q: Which would be an implicit cost for a firm? The cost of worker wages and salaries for the…

A: In economics, there are two types of cost, the one is explicit cost and other is implicit cost.…

Q: What is the plaintiff's best argument to establish that Dean Brother's Corp. is responsible for…

A: Answer (a) The plaintiff's best argument that Dean is liable for BSP's is that BSP is accountable…

Q: Find the value of explicit cost of the firm if the revenue generated is $8000 and the accounting…

A: The values given are:- Total revenue = $8000 And accounting profit = $5500 We can calculate the…

Q: total output

A: An increasing-cost industry tends to occur because the entry of new firms as being prompted by an…

Q: In the short run, a tool manufacturer has a fixed amount of capital. Labor is a variable input. The…

A: We have to calculate The equilibrium wage rate and equilibrium level of labour use.

Q: firm had sales revenue of $1 million last year. It spent $600000 on labor, $150000 on capital…

A: Following is the given information: Sales revenue = $1 million Amount spent on labor = $600000…

Q: Lisa and Adam started a business that manufactures cutting tools. They sell the tools for $80 each.…

A: Use Formulas: Total Variable Costs: TVC=VC x X Total Costs: TC=FC+TVC Total Revenue: TR=S x X…

Q: explain what is meant by explicit; implicit; and sunk costs. How are they used to calculate…

A: All the costs that are linked or incurred to the business activities of a company and are easily…

Q: Which of the following statements is correct? A. Accounting profit is typically larger than economic…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Which of the following is a typical example of a variable cost of production in a business firm? A.…

A: Variable Cost is that cost which keeps on changing with the change in the level of output.

Q: At the end of the year, a firm produced 20,000 laptop computers. Its total costs were $10 million,…

A: The variable cost: The variable cost can be calculated as follows: Thus, the value of variable cost…

Q: Why can the distinction between fixed costs and variable costs be made in the short run? Classify…

A: Costs refer to the expenses incurred by the producer to produce services and goods. Wage, rent,…

Q: Which of the following statements is (are) correct? (x) Ann decides to open her own business…

A: Explicit costs are the expenditures incurred by an individual or a business out of its own pockets.…

Q: Emco Company has an assembly line of fixed size A. Total output is a function of the number of…

A: Given: To Find: The marginal productivity of labor, the average productivity of labor, and the…

Q: Consider the statement: “Total output starts falling when diminishing returns occur”. Do you agree…

A: "Total output starts falling when diminishing returns occur." It is a disagreeable statement as…

Q: Suppose that a firm produces 475,000 units a year and sells them all for $20 each. The explicit…

A: All the firms try to maximize their profits. There are two types of profits- accounting profits and…

Q: Indicate how each of the following would shift the (1) marginal- cost curve, (2)…

A: There are two types of cost: fixed cost (FC) and variable cost (VC). Variable cost of production can…

Question

A firm had sales revenue of $1 million last year. It spent $600,000 on labor, $150,000 on capital and $200,000 on
materials. What was the firm’s accounting profit?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

A firm had sales revenue of $1 million last year. It spent $600000 on labor, $150000 on capital and$200000 on materials. What was the firm’s accounting profit?
Firm X is producing 1000 units, selling them at $15 each. Variable costs are $3 per unit and the firm is making an accounting profit of $3000. What is the firm's fixed costs?
A firm had sales revenue of $942 million last year. It spent $463 million on labor, $88 million on capital and $162 million on materials. The firm's factory sits on land owned by the firm that could be rented out for $2 million per year. What was the firm's economic profit last year in millions of dollars? (Do not include the word "million" or the dollar symbol in your answer, just a number.)
A firm had sales revenue of $1 million last year. It spent $600,000 on labor, $150,000 on capital and $200,000 on materials. Furthermore, the firm's factory sits on land owned by the firm that could be rented out for $30,000 per year. Calculate this firm's accounting profit and economic profit. Make sure to specify what would be explicit costs and what would be implicit costs.
Suppose a company incurs the following costs: labor, $2,000; equipment, $600; and materials, $200. The company owns the building, so it doesn't have to pay the usual $900 in rent. Instructions: Enter your responses as a whole number. a. What is the total accounting cost? $ b. What is the total economic cost? $ c. If the company sold the building and then leased it back, what would be the change in 1. accounting costs? $ 2. economic costs? $ Q Search L O of e <
a software production firm, average product has started falling and total output indicated diminishing trend. The production manager Mr. Yahya called you and asked you to see the condition of marginal product. You analyzed the situation and reported that marginal product falling more than average product. Mr. Yahya got surprised. In your opinion which situation the firm is heading to?
Find the value of explicit cost of the firm if the revenue generated is $8000 and the accounting profit is $5500
A firm producing 1000 units at a total cost of $5000, if it were to increase production to 1001 units , its total cost would raise to $5008, what does the information tell you about the firm?
Calculate the total revenue if explicit costs of the firm are $400 and the accounting profit is $850
Use the accompanying graph to answer the following questions. Assume the company makes 30,000 parts per month of Product A and 17,500 parts per month of Product B. Click the icon to view the provided graph. (a) Which Product has the higher variable cost, and what is this value in units of dollars per part? has the higher variable cost. This value is $/part. (Type an integer or a decimal. Round your answer to two decimal places.) More Info Total Cost or Revenue [$] Milions $6- $5- $4- $3- FA $0- O. 0 10 - Product A Total Cost - Product B Total Cost Product A Revenue Product B Revenue G1 A 20 30 G T 40 Time (t) [months] Print 50 Done 60 N ... 70 80 Ⓡ o X
Jason owns a small pizza restaurant, where he works full time in the kitchen. His total revenue last year was $136,000, and his rent was $2,610 per month. He pays his one employee $2,200 per month, and the cost of ingredients and overhead averages $960 per month. Jason could earn $32,600 per year as manager of al competing pizza restaurant nearby. What's Jason's accounting profit for the entire year? Your Answer: Answer
A company can produce 25 items for a total cost of $ 2250 with a fixed cost of $ 1000 and a selling price of $ 75. Find the cost, revenue, and profit function. Find the break even point. Sketch on the same graph the revenue and cost function and clearly label where the break even point is. When does the company have profit? Explain.