Question sandy owns a firm with annual revenues of 1000000, Ask an Expert

Economics

Question: Sandy owns a firm with annual revenues of $1,000,000. Wages, rent, and other costs are $900,000.

a. Calculate Sandy's accounting profit.

b. Suppose that instead of being an entrepreneur, Sandy could get a job with one of the following annual salaries

(i) $50,000;

(ii) $100,000; or

(iii) $250,000.

Assume that a job would be as satisfying to Sandy as being an entrepreneur. Calculate Sandy's economic profit under each of these scenarios.

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M92653002

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question econommic question please help1 describe the

Question: Econommic question, please help 1. Describe the evolution of the concept of international development and discuss the critiques against 'development'--or specifically modernization theory--from a dependency per ...

Question suppose that the government sets a price floor for

Question: Suppose that the government sets a price floor for milk that is above the competitive equilibrium price and that the government does not purchase any surplus milk. a. Draw a graph showing this situation. Be sur ...

Question andrew has 12000 that he will invest to have a

Question: Andrew has $12,000 that he will invest to have a down payment in 24 years for a vacation home. Assuming he can earn 8% on his investment how much would he have at the end of 24 years? The response must be typed ...

Question suppose the utility function for a consumer is

Question: Suppose the utility function for a consumer is given by U = 5XY. X is the amount of Good X and Y is the amount of Good Y. A) Neatly sketch the utility function B) Does this utility function exhibit diminishing ...

Question i own a business that burns a million dollars a

Question: I own a business that burns a million dollars a year of some fuel, and I cannot easily pass on increases in its price to my customers. Therefore, I trade futures and options to protect myself against increases. ...

Question a treasury bond pays 9 coupon pa on june 12 the

Question: A treasury bond pays 9% coupon p.a. On June 12, the bond has 63 days to the next coupon payment and there are 297 days since the last coupon payment (assume that there are 360 days in a year). Since the last co ...

Question consider the following data the money supply is 1

Question: Consider the following data: The money supply is $1 trillion, the price level equals 2, and real GDP is $5 trillion in base-year dollars. What is the income velocity of money? The response must be typed, single ...

Question a firms total cost and marginal cost functions

Question: A firm's total cost and marginal cost functions are: TC = 10 Q2 + 2Q-2; MC = 20 Q + 2 Assume that the market price is 42 and that the marginal revenue (MR) is also 42 (it is constant at all output levels). A) T ...

Question please answere in at least 4-5 sentancesaccording

Question: Please answere in at least 4-5 sentances: According to Keynes, "In market economies depressions are caused by the exhaustion of investment opportunities and the rigidity of saving." Explain. Would it be fair to ...

Question some companies offer programs that give employees

Question: Some companies offer programs that give employees a financial reward if they successfully quit smoking. Is a company more likely to offer this if it self-insures or if it contracts its health care to an outside ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert