I want to show a diagram for a tile company where sales are going up, and the profit # is also rising as is expenses. does this make sense?
I hope, because I am really confused of how I should do this diagram for econ.
thanks a lot
a- normal profit is $20,000
b-fixed costs are$25,000
c-explicit costs are $ 25,000
d-implicit costs are $25,000
What is the Difference between economic profit & accounting Profit? Please explain
In economics, firms are basically successful when they only make economic profit. How do you even calculate your economic profit? by adding everything in your life’s oportunity costs??!? Anyways, as long as all firms make accounting profit, arent they in good shape still ?
If accounting profit is $400,00 greater than economic profit, what do implicit costs equal? For reference Accounting Profit= Total Revenue-Explicit Costs and Economic Profit= Total Revenue- (Implicit Costs + Explicit Costs). Thank You For your answer!
When a firm is earning a profit that is less than a normal profit, then what?
a) the accounting profit must be less than zero
b) the economic profit is zero
c) it must be earning an economic loss
d) more firms will enter the market
please help!!
John jones owns and manages a caf. Anual Revenue $5000. his expenses are:
Labour- $2000
Food- $500
Electricity- $100
Vehicle lease- $150
Rent- $500
Interest on loan for equipment- $1000.
What would johns annual accounting profit be if instead of boorowing $10,000 at an annual interest rate of 10 precent for equip. john invensted his own $10, 000. Also what would his economic profit be?
Bob has been made a standing offer of $1 million for his burger shop by a competitor. He will also receive $50k/year if he sells out. Bob figures he could earn 10% on that $1 million. Currently Bob’s burger shop generates $200k in revenue and has expenses (wages, utilities etc.) of $100k. The original investment was $100k but the business is worth alot more today. Which would be considered explicit and implicit costs? Should he sell out from the point of view of an accountant and an economist? Would their views change if he inherited this business? How about if he owed $1 million to the bank on a 10% loan?
The answer needs to include the calculation of implicit cost, explicit cost accounting profit and economic profit before deciding whether to sell or keep the business.
And what is the difference between Sales Maximisation and Revenue Maximisation. And is it the same as Sales Revenue Maximisation?
Economic profit plus normal profit:
a.) is equal to accounting cose
b.) is equal to economic cost
c.) is equal to economic profit
d.) is equal to accounting profit
e.) none of the above