Calculate jawad annual accounting profit

Assignment Help Microeconomics
Reference no: EM133240953

Problem:

Jawad owns and manages a café in Collegetown whose annual revenue is $5000. Annual expenses are as follows.

Labor

$2000

Food and drink

500

electricity

100

Vehicle lease

150

Rent

500

Interest of loan

1000

a) Calculate Jawad'sannual accounting profit.

b) Jawad could earn $1000 as a recycler of aluminum cans. Is the café making an economic profit? Should Jawad stay in the café business?

c) Suppose that the café's revenues and expenses remain the same, but recycler's earnings are reduced to $700 per year. Explain what the situation would be now.

d) Suppose Jawad did not have to get a $10000 loan at an annual interest of 10%, but instead had invested his own money. Analyze the situation now.

Reference no: EM133240953

Questions Cloud

What is the estimated price of a burger : A human goes to the market and must decide between buying Pizzas or Burgers for their meal. Their budget is $104. The price of a pizza is $17.
What has changed regarding nutrition from healthy people : Access the "How has Healthy People Changed" area. What has changed regarding "nutrition" from Healthy People 2020 to Healthy People 2030 healthypeople
Explain how economies of scale and scope differ : The focus of this discussion is on understanding the differences between economies of scale and economies of scope. What are the key differences?
Identify and describe the dss ii alternative for preventing : CS 104 City School of Law, Quetta Identify and describe the DSS II alternative for preventing identity theft in Malaysia.
Calculate jawad annual accounting profit : Jawad owns and manages a café in Collegetown whose annual revenue is $5000. Annual expenses are as follows.
What specific indicators would you suggest facility tracks : What specific indicators would you suggest the facility tracks to measure its performance and what dimensions are most important in determining outcomes
What is the budget constraint graph : Jimmy has $100 and he decides to spend all of his money on buying shirts and shoes.
Describe the application of statistics in health care : Describe the application of statistics in health care. Specifically discuss its significance to quality, safety, health promotion, and leadership
Are there any benefits to the cost identified : Think of a company, and its industry, and give an example of an implicit cost for that company.

Reviews

Write a Review

Microeconomics Questions & Answers

  How changing tax rates affect consumption

Discuss how changing tax rates affect consumption spending and aggregate. Provide an example not in the textbook to illustrate your answer.

  What price to ask for well kept house in a growing neighbour

your grandmother heard you were studying economic and decided to make use of your knowledge. she is selling her house and wants to know what price to ask for her well kept house in a growing neighborhood you need more information; what did it cost..

  What would the demand curve look like

Suppose that there were 15 people are interested in buying good X who had a reservation price of Ksh 500, and the 16th person had a reservation price of Ksh200.

  Advantages and disadvantages for an automobile company

What are the advantages and disadvantages for an automobile company that builds a production facility in Africa? Johnson & Wales University.

  Demand curve and represent it inequation form

Continuing from question 1, suppose there is a newcomer (indexed by C) to this (verysmall!) community with the following demand curve for water,  P = 30 - 2q

  Government spending will cause the government budget deficit

If "the" multiplier is 3, the marginal tax rate is 20% and the money multiplier is 4, a $10b increase in government spending will cause the government budget deficit

  Fiscal and monetary policy-demand and supply of money

Suggest how fiscal and monetary policy can move those numbers to an acceptable level keeping inflation the same. What is the first action you would take as the president? As the chairman of the Fed? Why? What would be your subsequent steps?

  Assume that demand for microeconomics textbooks at gsu is

suppose that the demand for microeconomics textbooks at gsu is given byqd 10000 - 25pand that the supply of

  If actual real wage rate is above equilibrium real wage rate

If the actual real wage rate is above the equilibrium real wage rate there will be

  Describe why monopolistically competitive firms

Describe why monopolistically competitive firms find it important to establish brand loyalty.

  Finalizing an international investment

Economic and political stability are most important factors to be considered when finalizing an international investment.

  Comparing with one-factor authentication

Comparing with one-factor authentication, two factor authentication provides more protection to the user identity in online services. please compare the three different types of current;y available techniques for second factor regarding password crac..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd