During a year of operation, a firm collects $175,000 in revenue and spends $80,000 on raw materials, labor expenses, utilities, and rent. The owners of the firm have provided $500,000 of their own money to the firm instead of investing the money and earning a 14 percent annual rate of return.
a). The explicit costs of the firm are $. The implicit costs are $. The total economic cost is $.
b). The firm's economic profit is $
c). The firm's accounting profit is $
d). If the owners could earn 20 percent annually on the money they have invested in the firm, the economic profit of the firm would be______ (when revenue is $175,000).
earnsacquire or deserve by one's efforts or actionsMore (Definitions, Synonyms, Translation)
During a year of operation, a firm collects $175,000 in revenue and spends $80,000 on raw materials, labor expenses, utilities, and rent. The owners of the firm have provided $500,000 of their own money to the firm instead of investing the money and earning a 14 percent annual rate of return.
a). The explicit costs of the firm are $. The implicit costs are $. The total economic cost is $.
b). The firm's economic profit is $
c). The firm's accounting profit is $
d). If the owners could earn 20 percent annually on the money they have invested in the firm, the economic profit of the firm would be______ (when revenue is $175,000).
earnsacquire or deserve by one's efforts or actionsMore (Definitions, Synonyms, Translation)
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