All income in economy is either profit income or wage income

Assignment Help Business Economics

Reference no: EM131076330

Firm C produces 1,000 pounds of cotton at a cost of 50 cents per pound. They sell all of the cotton to Firm S for 75 cents per pound. Firm S makes 1,000 t-shirts with the cotton for a total cost of $1.50 per t-shirt. They sell all of the shirts to Firm R for $2.00 each. Firm R sells 950 of the t-shirts to consumers for $10 each and the total cost of producing each shirt is $8 each. There are no other firms in this simple economy. All income in the economy is either profit income or wage income. Do not enter dollar signs, and enter whole numbers only. The value added by Firm S is __$ and the value of profit earned by firm S is ___$.

Reference no: EM131076330

Questions Cloud

How long would it take giant tortoise to travel five meters : A giant tortoise can walk about 1/10 meter per second on land. A cooter turtle can walk about 1/2 per second on land. how long would it take a giant tortoise to travel five meters?

Case of managerial hubris : For this assignment, read the case study, "The 1920 Farrow's Bank Failure: A Case of Managerial Hubris." This case is located in the ABI/Inform Complete database found in the CSU Online Library (see reference below). Hollow, M. (2014). The 1920 Fa..

The real price of movie ticket was the same in both years : In 1976 a movie ticket was $4 and the price index was 56. In 2009 a movie ticket was $9 and the price index was 228. Based on this information: The real price of a movie ticket was the same in both years.

Find the rate at which water is being pumped into the tank : Water is leaking out of an inverted conical tank at a rate of 10,000 cm3/min at the same time that water is being pumped into the tank at a constant rate. find the rate at which water is being pumped into the tank

All income in economy is either profit income or wage income : Firm C produces 1,000 pounds of cotton at a cost of 50 cents per pound. They sell all of the cotton to Firm S for 75 cents per pound. Firm S makes 1,000 t-shirts with the cotton for a total cost of $1.50 per t-shirt. They sell all of the shirts to Fi..

Sufficient to increase our population standard of living : My contention is the US is not expanding its production possibilities enough to lead to an increase in our PPC sufficient to increase our population’s standard of living. List two policies that the US government could use that would likely increase o..

Why the government keeps these import restrictions in place : In 2013, U.S. sugar imports are restricted by way of an import quota. The domestic sugar price is kept above the world market price of sugar by way of a federal domestic price guarantee. IN comparing the cost or benefit of every job saved in the suga..

Range of production characterized by economies of scale : Let a firm's total cost be TC=800+8q+8q^2, its marginal cost is then given by MC=8+16q a) Derive an expression for the firm's average cost function B) Find the range of production characterized by economies of scale c)Do you think that economies of s..

User Account

All Pages