Calculate the following variables for the Scenario A given below: • Explicit (Accounting) Cost, • Implicit Cost • Economic Cost • Accounting Profit • Economic Profit Scenario A An engineer decides to give up her job and start her own business. Before she quit, she had been earning a salary of $40,000 per year. She withdraws her savings of $20,000 from her bank account where it had been earning an interest of $1,000 a year. She also uses her garage which she had been renting to her neighbor for $100 a month. The numbers are as follows: Company's revenue: $95,000 Assistant's salary: $21,000 Material and Equipment: $20,000

Calculate the following variables for the Scenario A given below: • Explicit (Accounting) Cost, • Implicit Cost • Economic Cost • Accounting Profit • Economic Profit Scenario A An engineer decides to give up her job and start her own business. Before she quit, she had been earning a salary of $40,000 per year. She withdraws her savings of $20,000 from her bank account where it had been earning an interest of $1,000 a year. She also uses her garage which she had been renting to her neighbor for $100 a month. The numbers are as follows: Company's revenue: $95,000 Assistant's salary: $21,000 Material and Equipment: $20,000

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 33CTQ: Average cost curves (except for avenge fixed cost) tend to be U-shaped, decreasing and then...

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