Answer:
Explanation:
3,800 units
x 0.05 hours per unit
190 labor hous
x $9.90 per hour
$1,881
4,300 units
x 0.05 hours per unit
215 labor hours
x $9.90 per hour
$2,128.5
We first multiply units bythe time it takes to do a single unit,
this will be the total labor hours required for the production
Then we apply the labor rate to get the labor cost.
The economic profit is calculated by,
Economic Profit = Total Revenue (TR) – ( Explicit Cost + Implicit Cost)
Total Revenue
Explicit Cost (Cost of land , Labor , capital) per acre = Machinery Ownership costs + Land Charge + overheads
Explicit Cost for 500 acres
Implicit Costs are not given
Economic Profit
Hence the economic profit is .
<h3>
Describe Economic Profit?</h3>
The difference between the revenue generated by the sale of an output and the prices of all inputs used, as well as all opportunity costs, is known as an economic profit. Possibility expenses and explicit costs are subtracted from earned revenues to establish economic profit. Economic profit is necessary because it helps examine an industry's financial and economic progress.
To learn more about Economic Profit, visit
Visit; brainly.com/question/7539101
#SPJ4
Answer:
the fastest we could drop your price before your monthly revenue starts to drop is $2,000
Explanation:
Data provided in the question:
Cars sold per month, Q = 70 cars
Price of each car, P = $35,000
Rate of increase in demand, = 4 cars per month
Now,
Revenue, R = Price(P) × Quantity (Q)
Thus,
When monthly revenue starts to drop i.e < 0
⇒ = < 0
or
⇒ < 0
or
⇒ < 0
or
⇒ < - 140,000
or
< - 2,000
Hence,
the fastest we could drop your price before your monthly revenue starts to drop is $2,000
A popular entrepreneurship method that's used to assess whether creative solutions solve customer problems is known as the value proposition canvas.
<h3>The four factors of production.</h3>
In Economics, there are four (4) main factors of production and these include the following:
Generally, the value proposition canvas is a famous entrepreneurship method that's used by entrepreneurs to assess whether creative solutions solve customer problems.
Read more on value proposition canvas here: brainly.com/question/18604839
#SPJ1
The traditional economies' law of production depends only on
agriculture, fishing, hunting, gathering or some combination of the above
mentioned. They only use barter instead of money. Meanwhile, there are
consequences of the traditional law of production because they are vulnerable
to change in nature especially the weather. For this reason, traditional
economies limit population growth. When the harvest or hunting is poor, people
will definitely get starve. Those societies often consume the natural resources
they will depend on or wage war