Calculation Of Economic Profit
$2.00$1.001719 reads
Question
1. Suppose that Bob leaves a job that pays $50,000 per year in order to open a new sponge business. His insurance cost is $5,000, his material cost is $25,000, his lease payments are $10,000 and his sales revenue is $90,000. Bob's economic profit is:
A) $0.
B) $40,000.
C) $50,000.
D) $90,000.
2. Using information from the figure, if price equals $0.70, the firm should:
A) stay open because it is making an economic profit.
B) stay open in the short run, although it will earn negative profits.
C) stay open because it is making a normal profit.
D) shut down.
Summary
These multiple choice questions belong to Economics. The two questions are about finding out economic profit.
Total Word Count NA
Related Solutions
Demand Curve Of Firm In Competitive MarketCalculation of Percentage Increase in Demand When Expenditures ChCobb- Douglas Production Function InterpretationCalculate Equilibrium Quantity and Price of a ProductPrice Of Product Being Equal To Marginal CostProblem - Total Cost, Average Cost, Marginal Cost
Recently Uploaded Solutions
Write an Essay on the Importance of Public RelationsWrite an essay on the positive impact of shareholder power on bonWrite An Essay On What You Want From Work And How To Achieve ItWrite an essay/report on Marketing Mix OrientationWrite an interview structure about poultry litter convert to bio Write Article Reflection On The Article “Improving Teaching And
Most Downloaded Solutions