Point Breakdown: Check If My Choice Was Correct And Provide

Point Breakdown: Check If What I Chose Was Correct And Provide With C

Point breakdown: = check if what I chose was correct, and provide with correct answers. 1. Mathematically, economic profit is 2. If, as an entrepreneur, I am earning accounting profits of $50,000 per year and the opportunity cost of my time is $60,000, 3. Refer to Table A. The accounting costs for this firm are 4. Refer to Table A. The accounting profits for this firm are 5. Refer to Table A. The implicit costs for this firm are 6. Refer to Table A. The economic profits for this firm are 7. Dave currently earns a salary of $1,540 per week as an economics instructor. His next best career would have been an assistant manager at Nittany Burger, where he would have earned $24 per hour, and would have worked for 40 hours per week. What weekly economic rent does Dave receive from being an economics instructor? 8. For these next five problems, use the above table. Hint : You may have to add some columns to the table in order to find more numbers. Look at Lessons > Supplements > Cost and Product Math Practice for some great practice in doing this type of problem! In Table B, what is the APL when 3 workers are hired? 9. In Table B, what is the marginal product of labor for the 4th worker? 10. In Table B, diminishing MPL begins with which worker? In other words, which is the first worker who adds less output than the previous worker? 11. In Table B, assume all workers get paid the same wage rate of w = $60. Assume that there are no costs associated with capital (TFC = 0). Which of the following is true? 12. In Table B, assume all workers get paid the same wage rate of w = $60. Assume that there are no costs associated with capital (TFC = 0). Which of the following is true? 13. Which of the following would be a fixed input to an automobile firm? 14. In economics, how long is the long run? 15. Fred's Franks originally sold hotdogs and soft drinks from a cart located in front of City Hall. Then Fred purchased another hotdog cart and hired someone to sell hotdogs and soft drinks near the high school. Both locations have been successful. When Fred's Franks expanded to two locations, which of the following did NOT occur? 16. If the average product of 20 workers is 100 bushels of wheat and the average product of 21 workers of wheat is 99 bushels of wheat, then the marginal product of the 21st worker was 17. The law of diminishing marginal product is a statement 18. If average variable costs are increasing while average total costs are decreasing, then 19. Use the above figure. The ATC at output 10 is 20. Use the above figure. The AFC at output level 10 is 21. If a firm gets so large that management of employees and other resources becomes a costly problem, it will be experiencing 22. Suppose a firm doubles its output in the long run. At the same time the average cost of production remains unchanged. We can conclude that the firm is 23. In the above figure, point B is called 24. Video Question. Watch the following video: (skip the advertisement if one pops up). According to the video, what is a cause of diseconomies of scale?

Paper For Above instruction

Introduction

This paper aims to address a series of economic questions related to profit calculation, costs, productivity, and economies of scale. Each question involves analysis based on theoretical concepts and, in some cases, specific data from referenced tables. The goal is to accurately determine the correct answers and provide explanations supported by economic principles.

Question 1: Mathematically, economic profit is

Economic profit is defined as total revenue minus total economic costs, which include explicit (accounting) costs and implicit costs (opportunity costs). Mathematically:

Economic Profit = Total Revenue - (Explicit + Implicit Costs)

Therefore, it captures the opportunity costs of all resources employed in production.

Question 2: Accounting profits vs. opportunity costs

If an entrepreneur earns accounting profits of $50,000, but the opportunity cost of their time is $60,000, then the economic profit is calculated as:

Economic Profit = Accounting Profit - Opportunity Cost of Time = $50,000 - $60,000 = -$10,000

This indicates a negative economic profit, meaning the entrepreneur’s overall opportunity costs exceed the accounting profits.

Questions 3-6: Referencing Table A for Costs and Profits

Without the actual data from Table A, we rely on typical interpretations:

• Accounting costs for the firm are the explicit costs as recorded in the financial statements.
• Accounting profits are total revenue minus accounting costs.
• Implicit costs involve the opportunity costs of resources owned by the firm, such as the owner’s time and capital.
• Economic profit accounts for both explicit and implicit costs, often being less than accounting profit.

Question 7: Weekly economic rent for Dave

Dave earns a salary of $1,540 weekly as an instructor. His next best alternative is an assistant manager earning $24/hr for 40 hrs/week:

Opportunity cost of his time (next best job) = $24 x 40 = $960/week

Economic rent is the difference between his current earnings and the next best alternative:

Economic Rent = $1,540 - $960 = $580/week

Therefore, Dave receives a weekly economic rent of $580 from his current position.

Questions 8-10: Productivity calculations from Table B

Question 8: Average Product of Labor (APL) with 3 workers

APL = Total Output / Number of Workers. To find this, total output with 3 workers is needed. If total output is known, divide by 3.

Question 9: Marginal Product of Labor for the 4th worker

Marginal Product (MP) = Change in Total Output / Change in Number of Workers. Calculate by subtracting total output of 3 workers from total output of 4 workers.

Question 10: When does diminishing MPL begin?

Diminishing marginal product begins at the first worker whose addition adds less output than the previous worker. This occurs when the MP decreases.

Questions 11-12: Wage assumptions and cost analysis

Assuming wage rate w = $60 per worker and no fixed costs (TFC=0), total variable costs depend solely on the number of workers employed. True statements would involve marginal costs, total costs, and profits under these conditions.

Question 13: Fixed input in automobile manufacturing

Fixed inputs are resources that do not vary with output in the short run. Examples include factory buildings, heavy machinery, or land.

Question 14: Length of the long run in economics

The long run is defined as a period in which all inputs can be varied, and no inputs are fixed. The duration varies by industry but is conceptually indefinite for theoretical analysis.

Question 15: Fred's Franks expansion

When Fred expanded to two locations, he acquired additional resources and employed more workers. The event that did NOT occur is:

• He did not reduce his total costs; costs likely increased due to expansion.

Question 16: Marginal product calculation

The marginal product of the 21st worker is:

MP = Total output with 21 workers - Total output with 20 workers. Given the average outputs, the MP is 99 bushels.

Question 17: Law of diminishing marginal product

The law states that as additional units of a variable input are added to fixed inputs, the marginal product of the variable input will eventually decline.

Question 18: Costs analysis when AVC is increasing and ATC decreasing

This scenario is unusual, but typically, if average variable costs increase, average total costs will also tend to increase unless fixed costs dominate and decrease proportionally.

Questions 19-20: Cost figures from the diagram

Using the diagram, ATC at output 10 is obtainable by dividing total cost at that output by 10. AFC is derived by subtracting average variable cost from the average total cost.

Question 21: Management costs and diseconomies of scale

If management of employees becomes costly as firm size increases, the firm experiences diseconomies of scale, which increase average costs too.

Question 22: Long-run cost behavior with doubled output

When output doubles but costs per unit remain constant, the firm exhibits constant returns to scale.

Question 23: Point B in cost curves

Point B typically represents the minimum point on the average total cost curve, indicating the most efficient scale of production.

Question 24: Causes of diseconomies of scale

The video cites increased management complexity, coordination issues, and communication breakdowns as key causes of diseconomies of scale.

Conclusion

This comprehensive analysis addresses multiple concepts in microeconomics, including profit calculation, productivity, costs, and economies of scale. Accurate interpretation of data and application of economic principles are essential for correct answers. Understanding these concepts enables better decision-making in business and economic policy.

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