What is the difforence between acounting proft and economic prof?OA Economic profit subtracts both expict and implicit oosts trom total revenue, while accourting proft only sutiracts explicit oosts.OR Accourting profe only nuttracta imglicit coeta from total revenue, whie ecoromic proft only suberacte explicit costeOG Economic proft oriy subtracts implict costs from total revenue, while accounting profit only subtracts enplicit costsOD. Accourting proft suberacts boh explict and impict costs from total ravanue, while economic proft only sutracts explicit oosts.

the correct option is a) economic profit subtracts both explicit and implicit costs from total…

What is the eiforence beteeen accounting proft and econonic profe OA Economic proft subtracts both expict and implicit costs hom tota revenue, while accourting proft only subtracts expicit costs . Accourting proft only sutracte implist oe tom to revenue whie ecoronic proft ony subtact eplicit cot OC Economic proft orty subtacts implict cots from totai revenue, while acounting proft only subracts explict costs OD. Accourting proft suberacts boh explict and implict costs rom tota revenue, while economic proft onty suteracts eplit costs

What is the eiforence beteeen accounting proft and econonic profe OA Economic proft subtracts both expict and implicit costs hom tota revenue, while accourting proft only subtracts expicit costs . Accourting proft only sutracte implist oe tom to revenue whie ecoronic proft ony subtact eplicit cot OC Economic proft orty subtacts implict cots from totai revenue, while acounting proft only subracts explict costs OD. Accourting proft suberacts boh explict and implict costs rom tota revenue, while economic proft onty suteracts eplit costs

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter7: Production, Costs, And Industry Structure

Section: Chapter Questions

Problem 4SCQ: Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the...

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Based on your answers to the WipeOut Ski Company in Exercise 7.3, now imagine a situation where the firm produces a quantity of 5 units that it sells for a price of 25 each. What will be the companys profits or losses? How can you tell at a glance whether the company is making or losing money at this price by looking at average cost? At the given quantity and price, is the marginal unit produced adding to profits?
Would you rather have efficiency or variety? That is, one opportunity cost of the variety of products we have is that each product costs more per unit than if there were only one kind of product of a given type, like shoes. Perhaps a better question is, What is the right amount of variety? Can there be too many varieties of shoes, for example?
Is a monopolistically competitive firm productively efficient? Is it allocatively efficient? Why or why not?
Under which of the folowing examples is t likaly that the accounting profit is positive and the economic profit is negative? OA Using a restaurant you purchased to sell Menican food instead of talian food. OR It you use a diamond mine as a touriet atraction instead of using it for mining. Oc Opering a bank branch near a university campus. OD. Such a scenario, where accounting cost is positive and economic profit is negafive, is not possibie.
ం వయడు Firms in Marçaa cost =o for Goth • FicmsAroduce Fir Twe firms 20 bertrand compotition for both diffrencided poduts, oms Sunction have the fallowing inverse denand शि= | -01- 203 pz=1-92-5 a Defue repried 6 Denve Rertrand equilbba Bertrand reaction functio) and diagremadticalde 5) madirall Deుల and equilubi gauntitier,pricer Arofits.
Linder which of the folowing asamples is E likaly that the accounting profit is pasitiva and the econamic proft is nagative? OA Uing a restaurant you purchened to seil Mexioan food inatead of taian food OB Fyou use a diamond mine as a lourist atraction instead of using it for mining OG. Opering a bark branch neer a university campua. OD. Such a sceraro, where accouning cost is postive and economic proft is negative, is not poesitie.
Isit possible for accounting profit to be positive and economic profit to be negative? OA Na, economic profit and accounting profit will always end up being the same. OB. No, economic profit must always be larger than accounting profit. OC Yes, this could ocour if axplicit costs were modest and implict costs were high. OD. Yos, this could occur if impiot costs were modest and explict costs were high.
A candy shop puts together wo prepackaged assortments to be given lo trick-on treaters on Haleween. The feasble set for producing s packages of assortment A and y packages of assortment 8 has been graphed to the right. For the eamings function Eamings 50 40y, where Eamings is in cents, how many of each assortment should be prepared in order to maximize profits? What is the maximum profirt The shop should prepare Type whole numbers) packages of assortment A and packages of ansortment B to maximize proft.
Suppoe at the curent level of production a frmts marginal revenue equalo $1,000, their average total costs curently equal $1,200, and their marginal cost equals S00, Tis firm OA should expand output because their evenue will increase by $1.000, OB. should not expand output because their profit will decrease by $200. OC should expand output because their profit will increase by $100 OD. There is not information given to determine whether this firm should expand output or not
Two firms in Couruo t Competition. Marginal praduce cost for both =0 döffrenciated pnoducts Firms have the following inverse demand function Pi=1-4 p2=1-92- वे Cournd reacthon functiou and m dicaramcebedhy. and a Derive the represend them తంయిమ ు 6)Derive the and pofits. Carmot eaubbrum gautitien.Arker
What is the difference between accounting profit and economic prof? A Economic profit subtracts both explicit and implicit costs from total revenue, while acounting profit only subtracts explicit costs. OR Accounting proft only subtracts implicit costs from totsi revenue, while economic profit only subtracts explicit costs. OC Economic proft orly subtracts implicit costs from total revenue, while accounting profit only subtracts explicit costs. OD. Accounting proft suberacts both explicit and implicit costs from total revenue, while economic proft only subtracts explicit costs
Consi der Hhe fallowing » The inverse femand function is givan by p= 30-@ Cournet medel. where Q = E,+ * Firm 13 marginal cost is $6lei=6). Fivm 2 uses a nem techaulagy There is no that it's marginal cost is $3 (6=3). fixed cort So The fwo fims chooce thair and Compete only Jame). Answer the follming puestions. O Derive Firm 1 amd Firm 2% vation furtions reupertivaly. o Solve Hhe Harh equilibrium ( ", q") O What is He equilibrinm level for eah firm. quenti tias simultaneculy (So it's a one- shot simultaneaus once price and what is Hhe profit Suppore there is Iim 2. Wlhat is the highert price that Firm I is willing to paj for this new o Mow let's chauge the setup from Coumet campetition to Bertrand Competitin, while maintaining all efther aJAump tins. What is He equilibium price? O Suppon the fwe finms engage in Betrand (ompetition What is the hijhut price that Fim 1 o milling for He new feihnly? * market for the teihue lagy uped by to