.Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a specific year. If the firm sold 4,000 units of its output at $500 per unit, its accounting profits were?

Q: 1. Explain the difference between an implicit cost and an explicit cost, and how both costs relate…

A: 1.  Implicit cost is the cost that has already occurred in the past. However, these are not direct…

Q: Suppose a firm expects that a $40 million expenditure on R&D in the current year will result in a…

A: Increase in net revenues = $60 - $54                                        = $6

Q: Classify each of the following cost items as mostly fixed or variable 1. Raw materials 2. Direct…

A: Note:- Since you have put a multi-part question, we are providing you with the solutions to the…

Q: we have assumed tha the production function simultaneously has constant returns to scale and…

A: The Constant returns to scale means the long run,keep adding number of input,and production is…

Q: D Question 13 1 pts If the firm made total sales of $968 million (mn) in 2020, spent $121 mn on…

A: Answer: Gross profit margin = Sales - COGS / Sales ×100

Q: Explain the expansion path when it is an increasing return to scale using graph and numbers. What…

A: To explain the expansion using the increasing returns to sale shows that by combining capital and…

Q: 4. Explain fully the concept of a BREAK EVEN ANALYSIS.

A: A break-even analysis is an analysis to determine the point at which revenue received equals the…

Q: Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a…

A: Normal Profit is the profit that considers both the implicit as well as explicit costs. It is…

Q: Problem 2: Investment 1. You have the following information about a firm: DY=AK®$ L°s, 2) A=2,…

A: (i) Y = AK0.5L0.5 Differentiate Y w.r.t K to get MPK => MPK = dY / dK => MPK = 0.5A K0.5 -1…

Q: When a company registers zero economic profits, it may be suffering losses from the accounting point…

A: Zero economic profits: A firm is in a normal profit condition when its economic profit equals zero,…

Q: Assume a Cobb-Douglas production function of the form: q = 10L0 58 K0.79 What type of returns to…

A: Increasing returns to scales  are present when increasing all factors of production by t leads to…

Q: 4. F&D Manufacturing company increases all its inputs by 50 percent each. If F&D's output increases…

A: The suppliers, firms, producers, and businesses tend to make up the supply side of the markets.…

Q: "returns to scale"

A: Law of variable production states that if we keep one factor fixed and keep increasing the other,…

Q: 1. State, and explain in detail, whether you agree or disagree with the following each) (a) The CES…

A: Hey, thank you for the question. Since you have posted multiple questions, as per BNED policy, per…

Q: Q9) Complete the table and show your calculation No. of variable inputs Total product Marginal…

A: Q9) Given  Marginal Product = change in total product/change in variable input.  Here change in…

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A: The markets are where the produced goods by the sellers of the market are sold, and the buyers…

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A: A microeconomic concept that relates to elements that lower production costs while increasing output…

Q: Suppose that a business incurred implicit costs of $400,000 and explicit costs of $3 million in a…

A: Here we calculate the economic and accounting profit by using the given data and choose the correct…

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A: 1. Working capital management is a business approach for ensuring that a firm functions efficiently…

Q: Selected accounts with some amounts omitted are as follows Work in Process Oct. 1 Balance 20,700…

A: * SOLUTION :-   Given that ,

Q: Suppose that a business incurred implicit costs of $400,000 and explicit costs of $4 million in a…

A: Answer: Accounting profit = Total revenue - Explicit cost Total revenue=Price×quantityTotal…

Q: (12) When marginal product reaches its maximum, what can be said of total product? (a) total…

A: Marginal Product(MP) is the value of additional output produced by using additional input. Total…

Q: a) The owners of firms in the real world would generally expect (in the long run at least) to have…

A: Let's first learn about economic profit. The difference between the revenue earned by the firm and…

Q: 3:55 QCCFIIMicCh7.docx QCCFIIMicCh7.docx 5. Suppose that a business incurred implicit costs of…

A: Hi! Thank you for the question but as per the guidelines, we only answer one question at a time.…

Q: If a firm has economies of scale, it must have increasing returns to scale. True or false? Explain.

A: Answer - Need to find - The statement is true or false Given in the question - If a firm has…

Q: Question #05 The short-run cost function of a company is given by the equation TC=200+55q, where TC…

A: Answers   TC=200+55q a) Fixed cost is that cost that is constant throughout all the quantities of…

Q: For the production process, we can distinguish between short-run and long-run process by the…

A: Production is the process of using inputs (the factors of production) to make useful output. Cost…

Q: True/False: 1. Implicit costs are those costs, which have been incurred in the past and cannot be…

A: (Since you have posted multiple questions, we will answer the first one for you. If you want a…

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

Q: Units Total Labor Hours Question 1 Average labor Learning Rate per unit Question 2- 10.8 5.4 10%…

A:

Q: e Cobb-Douglas production function Y = AKO.3L0.7 is a(n) production function, if A, K A.…

A: Constant returns to scale occurs when increase in all factors of production leads to same…

Q: During the month of July, your company makes $12,000 in total sales. Supplies cost you $3,000, and…

A: Answer: Given, Total revenue from sales = $12,000 Total explicit cost = Cost of supplies + Payment…

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A: Production function depicts the relationship between the physical outputs of a production process…

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A: Given the expenditures: Interest payment = $500 Labour costs = $500 Rent of building = $1000

Q: Which among these production functions exhibit increasing returns to scale? (Clue: you should scale…

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

Q: What is the difference between Interest Accrued and Interest Expense?   Can you give me a simple…

A: Accrued refers to something which has happened but is not paid for yet.

Q: Zubair purchases material by Rs. 20,000 per year and pays R. 10,000 for storage space. He recently…

A: The profit is a term that defines the net benefit to a firm from participating in the market. It is…

Q: AC1 AC2 AC1 AC2 LRAC 01 02 Output per time period Refer to the graph above to answer this question.…

A: The expenses that are being incurred by the business for carrying out its day-to-day transactions…

Q: Suppose that a business incurred implicit costs of $200,000 and explicit costs of $1 million in a…

A: Implicit costs = $200,000 Explicit costs = $10,00,000 Number of units = 4000 units Selling price =…

Q: Suppose the production function is Q = 8L + 15K where Q is the quantity of output, L is the quantity…

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

Accounting and Economic Profit analysis

One comes across the concept of Profits in the context of business and in analyzing the results of business activity. Profits of a business can be accounting profits, and they can also be economic profits. So how does one understand the concept of accounting versus economic profits?