It profits a man nothing to give his soul for the whole world, but for Wales?
The swag shop sold 10 T-Shirts for $20 each. What was their total revenue?
$200
In a book making company, name a fixed cost?
What costs are included in the calculation of economic profit but not in accounting profit?
Opportunity costs
Widgets are sold in a market where there are many buyers and sellers, the products are identical, nobody has pricing power, and it is easy for businesses to enter and exit the market. What market structure would this be?
Perfect Competition
The swag shop made $300 in total revenue and had $250 in total cost. What was the profit or loss?
$50 Profit
In a book making company, name a variable cost?
Paper
Bob left his job at a coffee shop to start a cupcake business. He spends $400 a month on supplies (that he otherwise would not have spent). He earns $800 a month at his new job. He used to earn $2,000 per month as an economics teacher.
What is Jerry’s accounting profit?
$400
Coke and Pepsi dominate the soda market. Since there are only two supplies this is considered (an)
Oligopoly
Hoplite Holdings incurs a fixed cost of $2,000 and a variable cost of $5 per unit. If they produce 300 units, what is their total cost?
$3,500 (2,000 + (5 x 300))
In a restaurant, the cost of ingredients would be a fixed cost or variable cost?
Variable cost
Bob left his job at a coffee shop to start a cupcake business. He spends $400 a month on supplies (that he otherwise would not have spent). He earns $800 a month at his new job. He used to earn $2,000 per month as an economics teacher.
What is Jerry’s economic profit?
-$1600
In the market for colleges, there are hundreds of choices but consumers can tell the difference between them. They compete with each other but each one offers a different product. This is an example of
Monopolistic Competition
Starburst Corp. has a total revenue of $11,000 and total costs of $15,000. What is the total profit or loss?
$4,000 loss
How do you calculate total cost?
Fixed cost + Variable cost
Unless opportunity costs are 0, ___________ profit will always be higher.
A. Accounting
B. Economic
A. Accounting Profit
In the market for Running shoes, less than 10 manufacturers control the market. This is an example of
Oligopoly
If Better Banana Co. has a profit of $3,000 and total revenue of $10,000 what is the total cost?
$7,000
This is how you calculate Average Total Cost
Total Cost / Number of units made
Julia owns a small bakery. Last year, her bakery made $100,000 in total revenue. Her explicit costs for ingredients, rent, utilities, and employee wages totaled $60,000. Additionally, Julia could have earned $30,000 working as a pastry chef at another bakery, which represents her opportunity cost?
The 30,000 she could have made at the small bakery
Groups of firms that get together to raise prices and restrict competition is called a
Cartel