QuacionLast year, Jarod left a job that pays $80,000 to run his own bike-repair shop. Jarod's shop charges 365 for a repair, and last year the shop performed 4,000 repairs. Jarod's production costs for the year includedrent, wages, and equipment, Jarod spent $60,000 on rent and $120.000 on wages for his employees. Jarod keops whatever preft the shop eams but does not pay himself an olle wage Jarod used $25,000 ofhis savings to buy a machine for the business. His savingsa saming an annual interest rate of 6 percent.a. What is Jarod's annual accounting profi? (b. What is Jarod's annual economic profit?c. Based on what you have found in parts a and b., should Jarod continue running his bike-repair shop or quilt to return to his former job?

Accounting costs, also referred to as explicit costs are the costs that a firm pays out of its…

Last year, Jarod left a job that pays $80,000 to run his own bike-repair shop. Jarod's shop charges 365 for a repai, and last year the shop performed 4,000 repairs Jarod's production costs for the year included rent, wages, and equipment, Jarod spent $60,000 on rent and t byees Jarod keops whatever p the shop eams but does not pay himself an official wags Jarod used $25,000 of his savings to buy a machine for the business. His savings ware saming an annual interest rate of 6 percent a. What is Jarod's annual accounting prof? b. What is Jard's annual economic profit? c. Based on what you have found in parts nd b, should Jarod continue running his ble repair shop or qul to retum to his former job?

Last year, Jarod left a job that pays $80,000 to run his own bike-repair shop. Jarod's shop charges 365 for a repai, and last year the shop performed 4,000 repairs Jarod's production costs for the year included rent, wages, and equipment, Jarod spent $60,000 on rent and t byees Jarod keops whatever p the shop eams but does not pay himself an official wags Jarod used $25,000 of his savings to buy a machine for the business. His savings ware saming an annual interest rate of 6 percent a. What is Jarod's annual accounting prof? b. What is Jard's annual economic profit? c. Based on what you have found in parts nd b, should Jarod continue running his ble repair shop or qul to retum to his former job?

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter20: Consumer Choice And Elasticity

Section: Chapter Questions

Problem 2CQ

See similar textbooks

Similar questions

What is die difference between accounting and economic profit?
How does fixed cost affect marginal cost? Why is this relationship important?
What is a production technology?
Do you think that the taxicab industry in large cities would be subject to significant economies of scale? Why or why not?
The manager of the donut shop tells you that hesells donuts for $1 each, and that if he were to makeadditional donuts, based on his current level ofoutput, it would cost him $0.80 per donut. Do yourecommend that the manager increase or decreasethe number of donuts he makes?
2 You run a business selling used hand tools. The rent on your building is $1400/month. Utilities average $600 month. Your average cost to buy your used hand tools from a wholesaler is $9.5/tool. You spend S0.50/tool to package and individually price them. You have two employees in your store during the opening hours that sell the tools. Each employee gets a salary of $12/hour. Your store is open 10 hours/day, every day of the week. Over the course of a year, this averages out to 30 days'month. The average selling price for a used tool is $22. How many tools per month must be sold to make $4000 profit each month.
Production costs of books are presented in the table below. Labor Quantity Fixed Cost Variable Cost Total Cost MarginalCost AverageTotal Cost 0 0 $80 $0 $80 1 10 $80 $30 $110 2 26 $80 $60 $140 3 46 $80 $90 $170 4 65 $80 $120 $200 5 78 $80 $150 $230 Using the table above, find out the marginal cost of the 46th book produced, in dollars.
i will 20 upvote urgent
Table 13-7The Flying Elvis Copter Rides Quantity TotalCost FixedCost VariableCost MarginalCost AverageFixedCost AverageVariableCost AverageTotalCost 0 $50 $50 $0 -- -- -- -- 1 $150 A B C D E F 2 G H I $120 J K L 3 M N O P Q $120 R Refer to Table 13-7. Fill in ALL THE VALUES FROM A to R in the table.
A young chef is considering opening his own sushi bat'. To do so,he would have to quit his cttt'rent job,which pays $20,000 ayea1; and takeovet' a store building that he owns and cut'rently rents to his brother fol' $6,000 a year. His expenses at the sushi bar would be $50,000 for food and $2,000 for gas and electricity.\'Vhat at'e his explicit costs? a.$26,000 b.$66,000 c.$78,000 d.$52,000
0 Labo capit total Labors ur al product $20 FC 5 15 1 10 1 1 1 20 1 Question 6 Mr-Ali Alawi recently set a shoe manufacturing outlet. He is planning for production demand, labor requirement, fixed cost, variable cost, the revenue. He come up with the following schedule. Help him to fill up the schedule. Initially he plans to use one machine. Total fixed cost per month is expected to be $1000. The unit cost of labor is estimated to be $20. 0 25 75 100 VC=# of 150 0 100 200 300 1000 total Cost(FC+VATotal cost/ C) 100 1000 120 1000 140 1000 160 Marginal cost(MC) 400 1000 180 ATotal Product Total Revenue Profit
A textile worker in the city of Londo n earns dollar 3500 per month. The cost of living index for a particular month is given as 136. Using the fo llowing data, find out the amounts he spent on house rent and clothin g. Group Food Group Index 180 150 Еxpenditure 1400 Clothing House Rent ? ? 100 Fuel and Lighting Miscellaneous 560 110 630 80