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dimulka [17.4K]
2 years ago
7

Total revenue minus the total _____ and total _____ costs of production is economic profit. Multiple choice question. explicit;

accounting explicit; modified implicit; explicit implicit; modified
Business
1 answer:
sladkih [1.3K]2 years ago
4 0

Total revenue minus the total explicit and total implicit costs of production is economic profit.

Economic profit is accounting profit less implicit or opportunity costs. It is also total revenue less explicit and implicit cost.

Explicit cost is the amount used in running a business. Examples are rent and wages.

Implicit cost is the cost of the next best option that is let gone off when one option is chosen over other options. For example, a baker leaves his job to start his own business. His implicit cost is the wages he earned as a baker.

A similar question was answered here: brainly.com/question/15036999

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A monopoly market is characterized by the inverse demand curve P = 1,200 – 40 Q and a constant marginal cost of $200. If the mar
Sergeeva-Olga [200]

Answer:

The profit maximizing output level declines by 2.5 units and the price rises by $100.

Explanation:

In a monopoly market the inverse demand curve is given as,

P = 1,200 - 40Q

The marginal cost of production of the last unit is $200.

The total revenue is

= Price\times Quantity

= 1,200Q - 40Q^{2}

The marginal revenue of the last unit is

= \frac{d}{dx} TR

= 1,200 - 80Q

At equilibrium the marginal revenue is equal to marginal price,

MR = MC

1,200 - 80Q = 200

80Q = 1,000

Q = 12.5

Putting the value of Q in the inverse demand function,

P = 1,200 - 40\times 12.5

P = $700

Now, if the marginal cost rises to $400,

At equilibrium the marginal revenue is equal to marginal price,

MR = MC

1,200 - 80Q = 400

80Q = 800

Q = 10

Putting the value of Q in the inverse demand function,

P = 1,200 - 40\times 10

P = $800

4 0
3 years ago
In the perfectly competitive gadget industry there are 10 firms with identical costs given by C = 500 + 20q + q2, none of which
IgorC [24]

Answer:

The explanation is below

Explanation:

A.  Shutdown point is achieved when price equal AVC. when price lowers than the AVC, firm shutdown.

VC = q^2

AVC = q

So,

P = q is the shutdown point.

B.  For profit maximizing level of output,

P = MR = MC

500 = 20 + 2q

q = 240 units

So, profit maximization level of output = 240 units

C.  Firm level supply curve = MC curve above the shutdown point

Number of firms = 5

So,

Industry supply curve = 10*MC = 200+20Q

Industry supply curve = 200+20Q

It shows that MC curve above the shutdown point is supply curve.

4 0
3 years ago
Marginal​ cost-benefit analysis and the goal of the firm   Ken​ Allen, capital budgeting analyst for Bally​Gears, In
mafiozo [28]

Answer:

a.The marginal (added) benefits of the proposed new robotics.

  • $195,000

b. The marginal (added) cost of the proposed new robotics.

  • -$227,200

c. The net benefit of the proposed new robotics.

  • loss =  -$32,200

d. What should Ken recommend that the company do? Why?

  • Based only on this analysis, the company should keep the old robotics. The new robotics are too expensive and do not generate enough benefits.

e. What factors besides the costs and benefits should be considered before the final decision is made?

  • increases in efficiency and reductions in manufacturing time.

Explanation:

Marginal cost benefit analysis refers to analyzing the additional benefits of a new project or activity compared to the benefits generated by an alternative project or activity.

In this case, both alternative should be evaluated as follows:

                                alternative 1           alternative 2        marginal

                                keep robotics        change robotics  benefits

revenue (in              $446,000              $568,000             $122,000

today's $)  

required invest.                   $0             -$227,200           -$227,200

old robotics                         $0                $73,000               $73,000

<u>sales value                                                                                           </u>

marginal benefits / losses                                                  -$32,200

6 0
3 years ago
Under the franchise model, if pods were to engage in dubious/controversial activities, then franchisees might see a decline in b
fenix001 [56]
This is known as the coattail effect. It is when the actions or activities of the main branch of a business or the franchise branches would impact the whole business. This is one weakness of a franchise business. since one wrong move from just one small branch would might have a larger impact on the whole name of business.<span />
3 0
3 years ago
Amy is a current shareholder of DJ Industries. She has been given the right to purchase an additional 25 shares of DJ Industries
jasenka [17]

Answer:

stock warrant

Explanation:

Amy was given a stock warrant which gives her the right to purchase a specific number of stocks (25 stocks) at a specific price ($32) during a specific time period (12 months). Stock warrants are issued directly by the corporation to the stockholders. Stock warrants are also tradable, so Amy can choose to sell them to another investor.

7 0
3 years ago
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