What are the entrepreneurs economic profits from activity

Assignment Help Econometrics
Reference no: EM13242562

each question. Show your work for possible partial credit.
Entrepreneur's potential earnings as a salaried worker = $65,050
Annual lease on building = $34,006
Annual revenue from operations = $290,040
Payments to workers = $160,003
Utilities (electricity, water, disposal) costs = $8,010
Entrepreneur's potential economic profit from the next best entrepreneurial activity = $80,100
Entrepreneur's forgone interest on personal funds used to finance the business = $6,200

a) What are the entrepreneur's explicit costs?

b) What are the entrepreneur's implicit costs?

c) What are the entrepreneur's economic profits from this activity?

Reference no: EM13242562

Questions Cloud

Molarity of an aqueous solution containing glucose solution : What is the molarity of an aqueous solution containing 75.3 g of glucose (C6H12O6, mol wt = 180 g/mole) in 35.5 mL of solution
What is the maximum possible efficiency of the system : A proposed ocean thermal-energy conversion (OTEC) system is a heat engine that would operate between warm water (17°C) at the ocean's surface, What is the maximum possible efficiency of the system
Evaluation the impact of laws and regulations : Evaluation the impact of laws and regulations in legal agreements on relationships between different parties in supply chains is essential, particularly when we are dealing with other countries.
What is the temperature increase of the water : One cubic meter of water (see Table 4.4 for the mass density of water) flowing over the Osprey Falls in Yellowstone National Park drops 46 m, what is the temperature increase of the water
What are the entrepreneurs economic profits from activity : Annual revenue from operations = $290,040 Payments to workers = $160,003 Utilities (electricity, water, disposal) costs = $8,010 Entrepreneur's potential economic profit from the next best entrepreneurial activity = $80,100 Entrepreneur's forgone int..
What is its temperature change : A 0.07-kg lead bullet traveling 296 m/s strikes an armor plate and comes to a stop. If all of the bullet's energy is converted to heat that it alone absorbs
What is the magnitude of the earths acceleration : Calculate the magnitude of the gravitational force exerted on a 611-kg satellite that is a distance of two earth radii from the center of the earth, What is the magnitude of the earth's acceleration
Is the demand curve elastic or inelastic in the region : Suppose a supply increase causes the equilibrium to shift from the one above so that the equilibrium quantity changes from that in the diagram to an equilibrium quantity of 200. What is the elasticity of demand along the above demand curve
Explain what is the mass of a piece of silver with a volume : The density of silver is 10.5 g/mL. What is the mass (in grams) of a piece of silver with a volume of 23.6 mL

Reviews

Write a Review

Econometrics Questions & Answers

  Detrmine the income elasticity of demand

The demand for haddock has been estimated as log Q = a=b log p=cl log I = d log Pm Where Q= quantity of haddock sold in New England P = price per pound of haddock I =a measure of personal income in the New England region and Pm= an index of the pr..

  Evaluate the price elasticity of demand in each submarket

Dertermine the profit maximizing level of output to be produced and sold in each submarket. What price should the firm charge in each submarket.  Evaluate the price elasticity of deman in each submarket.

  How many jobs were saved due to the arra

There are various estimates for the amount of jobs saved by the federal government's stimulus plan the American Recovery & Reinvestment Act (ARRA) of 2009. (a) According to the Council of Economic Advisors' report from January 2010.

  What would total compensation have been in billions

Suppose that in this economy the fraction of total output in a sector that is paid to labor is the same as the fraction paid to labor in the United States. When output was $300 billion (in constant dollars), what would total compensation have been..

  What level should he change his price

John Smith, C.E.O. of A.B.Co. is attempting to estimate the quantity of his product that will be demanded during April. At the current price of $20.00, A.B. Co. is selling 100,000 units per month. Mr. Smith has been informed th..

  Describe should the machine be purchased now

Seven years ago a vertical drill was purchased for $10,000. Drill had 12 years of expected life and zero estimated value at the end of that period. The current market value of the drill is $1,000. The new drill's total investment cost would be $12..

  What rate do you believe to be more appropriate

the state of glottamora has $100 million remaining in its budget for the current year. one alternative is to give glottamora a one- time tax rebate. alternatively, two proposals have been made for state expenditures of these funds.

  How much interest will they pay in the second payment

Amanda and Blake have found a house, which owing to a depressed real estate market costs only $201500. They will put $22000 down and finance the remainder with a 30-year mortgage loan from Bank of America at 4.65% (compounded monthly).

  Waht is the later years student cpi

Suppose that the typical student consumer basket is made up of only three items: The typical student consumes 1000 meals each year, makes 12 housing payments each year, and pays for 40 credit-hours of tuition each year.

  What savings rate would be needed in order for the economy

Suppose that the economy under study has the following characteristics: s = 0.30 n = 0.02 g = 0.10 d = 0.03K = 1600 Y = 800 N = 100 A = 2 Y = F(K, N, A) = AF(K, N) = A(K^(1/2))(N^(1/2))

  Find the quantities sold by each firm and the market price

Consider a simultaneous move quantity-setting game with two firms facing a demand curve p = 100 - q. Both firms have marginal cost of 20. Suppose one firm maximizes profit and the other maximizes revenue, but both take into account the other firm'..

  Calculating herfindahl index

Determine the Herfindahl index for an industry composed of three companies one with 70% of the market, and the other two with 20 and 10 percent of the market respectively one company with 50% share

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