small coffee house has the following costs:  building and pizza oven rentals 100,000  labor 120,000 owners salary given up 85,000 value of entrepreneurial talent 30,000 raw material 100,000 Bank loan payment 15,000 interest given up by owner 5,000 revenue for the firm is expected to be 420,000 for the year.  a. Calculate the firms accounting profit and its economic profits  b. Should the firm continue business in the long term if revenue and costs continue at the same level? Why or why not?

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A: Total revenue, which is the full amount of total sales, is calculated by multiplying the total…

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A: Cost is the expenditure incurred by firms on the production of goods and services.

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A: total cost is defined as the sum of all the expenses incurred by the producer to produce goods.…

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A: Implicit cost is the opportunity cost of making a decision. Accounting Profit does not involve…

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A: We know that the economic profit is the difference between the total sales revenue of output and the…

Q: After one month of operation, OU Café determined to shorten its business hours and close on…

A: The total costs of any firm includes fixed costs and variable costs. The fixed costs refer to those…

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A: (A) Total Cost = Total Fixed Cost + Total Variable Cost  Marginal Cost = Change in Total Cost /…

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A: TC= Total cost FC= fixed cost VC= variable cost ATC= average total cost AFC= Average fixed cost…

Q: The following is cost Information for the Creamy Crisp Donut Company. Entrepreneur's potential…

A:

Q: Utilities = $20,000 Wages = $100,000 Owner's Salary = $95,000 Potential Rent from Building

A: An economic profit is the difference between the opportunity costs of its inputs and the revenue a…

Q: 38) Dr. Khan starts his own dental practice after quitting his $150,000 job at The Mall Dental…

A: here we can find the correct option as follow

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A: Total variable cost is the aggregate amount of all variable costs associated with the cost of goods…

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A: The profit is defined as an excess revenue that has been made by the firm that has deducting the…

Q: tc. co

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Q: Explain how Coca-Cola, Inc. takes advantage of economies of scope

A: Economies of scale is when a business takes advantage of the scale of its operation to reduce its…

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A: Both Economic profit and Accounting ptofit solved below,

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A: The marginal revenue refers to the additional revenue earned on selling an additional unit of…

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Q: You own an apartment building with 25 rental units renting at current market rate for $2500 a month…

A: Total revenue = price*quantity

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A: Selling price per meal = $14 Markup price on each meal = $5 Overhead expenses = 19% of cost

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A: TC=TFC+TVC AVC=TVC/Q MC=change in TC/change in Q fixed cost is independent of output produced.

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A: Economic profit takes into consideration all revenue items and cost items and also the opportunity…

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Q: 16 14 12 LATC 10 AVC 6 4 MR 70 80 90 100 110 120 10 20 30 40 50 60 Total Cost Total Variable Cost…

A: Answer: The equilibrium in this market will occur where the marginal revenue (MR) curve and marginal…

Q: True or false? d. Accounting profit is smaller than economic profit. e. Total cost divided by output…

A: Accounting profit refers to the excess amount of revenue over the total cost.

Q: production as follows: Quantity Total Fixed cost Total Variable Cost 0 200 0 1 200 50 2 200 70 3 200…

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Q: Which of the following is correct? economic profit + implicit costs = accounting profit O implicit…

A: Economic Profit is the difference of between the total revenue and total cost of all the inputs.…

Q: Calculate accounting profit given:- Total revenue = $4500 Explicit cost = $4500

A: Given:  Total Revenue = $4500 Explicit Cost = $4500

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A: Average total cost (ATC) is per unit cost which is calculated by dividing the total cost (TC) by the…

Q: Explain the concepts of revenue, costs and profi

A: Economics: It relates to the production, consumption, and transfer of wealth.

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.