What were your total explicit costs and your implicit costs

Assignment Help Business Economics

Reference no: EM131095970

After graduation you face a choice. One option is to work for a highly regarded consulting firm and earn a starting salary (benefits included) of $55,000. The other option is to use $12,000 you have in savings to start your own consulting firm. Assume you are earning an annual return of 5 percent on your savings. You choose to start your own consulting firm. At the end of the first year, you add up all of your expenses and revenues. Your expenses include $18,000 in rent, $1,000 in office supplies, $50,000 for office staff, $20,000 for your own salary, and $4,000 in telephone expenses. Revenues totalled $147,600. Based on the information provided, what were your total explicit costs? Your implicit costs? What was your accounting and economic profit this first year? Show your work!

Reference no: EM131095970

Questions Cloud

Explain price determination in a competitive market : Explain price determination in a competitive market, and show how equilibrium changes in response to changes in determinants of demand and supply.

History of the quality movement : Discuss the history of the quality movement in the U.S., Japan, and China. Submit APA format with assignment.

How much should the government spend on weather forecasting : Public Goods: Suppose that weather forecast systems require funding in billion-dollar chunks, and that each billion dollars invested in weather forecasting doubles your odds of getting the forecast right—that if you spend nothing your forecast, pure ..

Minimum wages-the change in consumer and producer surplus : Minimum Wages: In lecture we set down rough numbers for California’s forthcoming ongoing choice to raise the minimum wage to $15/hour in 2023—to a level that represents an increase from a level in 2014 that, relative to productivity and given current..

What were your total explicit costs and your implicit costs : After graduation you face a choice. One option is to work for a highly regarded consulting firm and earn a starting salary (benefits included) of $55,000. The other option is to use $12,000 you have in savings to start your own consulting firm. Based..

Sdlc for develop the information : 1. Perform a normalization process for the scenario. Use dependency diagram in your explaination. 2. Develop an entity relationship diagram(ERD) based on task 1 and SDLC for develop the information.

What tax should it levy on each of the two goods : The demand for snorkels in Berhama is given by QS = 500 – 8PS and the supply of snorkels in Berhama is given by QS = 200 + 4PS. The demand for kayaks is given by Qk = 1850 –6Pk and the supply of kayaks is given by Qk = 50 + 1.5Pk. Both goods are curr..

Regressive tax system be more or less efficient : Festwalia has two types of workers: low-skill workers, who earn $10 per hour, and high-skill workers, who earn $20 per hour. The government of Festwalia currently imposes a 20% proportional tax on all labor earnings. It is considering replacing this ..

User Account

All Pages