QUESTION 7 3 points Save Answer Winston gave up a job that paid $65,000 to open

Question

QUESTION 7 3 points Save Answer Winston gave up a job that paid $65,000 to open up a barbar shop. He invested $50,000 of his own money that was earning 6%. His annual revenue from giving haircuts was $120,000. His out of pocket/accounting costs, rent, utilities, etc, totaled $55,000 for the year. Based on this information Winston's economic profit was: O-$3,000 $3,000 $65,000 QUESTION 8 2 points Save Answer After hiring three new employees your company's total production increases from 2,000 units to 2,600 units. Based on this information marginal product is equal to: 600. 1,800 200 300 0

Explanation / Answer

1. Economic profit = Total revenue - (explicit costs + implicit costs)

= $ 120,000 - 55,000 - 65,000 = 0

So, option (D) is correct.

2. When total production increases from 2000 units to 2600 units, then Marginal product will (2600-2000) = 600 .

Therefore, option (A) is correct.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.