Economic profit or loss

Assignment Help Business Economics
Reference no: EM135829

Q. Rafidah was earning $100,000 a year working as a scientist for a drug company. She decided to start her own business that conducted drug trials. She estimates this entrepreneurial talent or forgone entrepreneurial income to be $10,000 a year. She used $500,000 in savings that earned 5 percent interest annually to finance the new business. In the first year, the firm earned revenue of $1,500,000. The costs for rent, supplies, and employees' salaries were $1,100,000. What was the accounting profit for the new business? What was the economic profit (or loss)? Explain your calculations for both questions.

Reference no: EM135829

Questions Cloud

Provide the genotypes of the parents : He hopes this will slow the evolutionary development of BT resistant insects. Which seed variety must he use the 10 percent of his field that is not planted with BT 123 seeds.
Average variable cost : For each level of output except zero output, calculate the average variable cost, average total cost and average fixed cost.
Detailed studies of the behaviours of individual fish : A fish on the outside of a school swims inward, leaving other fish on the edge. These new "edge" fish then move inward and the cycle repeats.
Hardball for women - the loyalty game : Hardball for Women, contains many useful tips that women need to know in order to navigate corporate culture. The following list of chapters has one or more discussion questions/exercises
Economic profit or loss : What was the accounting profit for the new business. What was the economic profit or loss. Explain your calculations for both questions.
Evaluate company''s revenue and net income : Try to evaluate filings before, during, and after ERP systems were implemented. Summarize your findings. How would you describe reasons for the company's revenue and net Income trend to the average personal investor
How much money will you require to deposit to get goals : Suppose a 10% interest rate, how much money will you require to deposit each year to be able to meet these financial goals?
Oil and gasoline prices in the united states : Oil and gasoline prices are a concern in the United States. Why does this economic problem exist from a supply and demand perspective, what can be done to improve resource allocations.
What are the genotypes of the parents : What information does it not provide that may be useful for deciding on conservation efforts. What are the genotypes of the parents.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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