1. a. The total explicit cost is $793‚000($970‚000-$177‚000). The total implicit cost is $190‚000($175‚000+.15X$100‚000). The total economic costs is $983‚000($793‚000+$190‚000). b. The accounting profit in 2010 is $177‚000($970‚000-$793‚000) c. The economic profit in 2010 is $-13‚000($970‚000-$793‚000-$190‚000). d. The owner should not leave his job because the economic profit is negative‚ which means he will earn less if he does his own business. 2. a. The type of agency problem that is involved
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chosen firm in a perfectly competitive market. I think this is a good example. It sells bananas to supermarkets and food suppliers‚ who resell on to customers. The next two paragraphs explain the features of perfect competition‚ then a monopoly. “The theory of perfect competition illustrates an extreme form of capitalism.” (Sloman‚ 2007:113) There are many suppliers‚ who all only supply and produce a small fraction of the total output‚ of the whole industry. None of the firms have any power over
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Lab budgeting and cost accounting under DRGs Medical Laboratory Observer‚ Feb‚ 1985 by W. Glenn Cannon Cost accounting is not a solution to management problems. It is a management tool designed to provide information that facilitates sound decisions. The two primary objectives of cost accounting are 1) to match cost with revenue and 2) to match resource consumption with the units of service provided. Under the DRG system‚ matching revenue with cost and evaluating appropriate utilization levels
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organizations strive to earn short-run profits. In making short-run decisions‚ not all cost and revenue data is relevant. The cost data relevant for decision-making is referred to as relevant costs and that which is not useful for decision-making is non-relevant costs. On the revenue side‚ the only relevant revenue is the incremental & differential revenue. Relevant and Non-Relevant Costs: 1. Future Costs and Sunk Costs (IR): A future cost is that cost yet to be incurred and since the decision
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MANAGEMENT ACCOUNTING APPLICATIONS The learning curve: from aircraft to spacecraft? instructions‚ the components‚ and how to assemble them. In addition‚ you may also lack confidence in your ability to produce an acceptable product. The second one‚ however‚ will take you less time‚ as you will be more familiar with the instructions‚ the components‚ and the assembly procedures. You will also be confident of your ability to assemble this product. The third one will take even less time‚ as you will
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TECHNOLOGICAL INSTITUTE OF THE PHILIPPINES COLLEGE OF BUSINESS EDUCATION Principles of Economics With Land Reform and Taxation (Econ 003) NAME : _______________________________________________ SCORE : ____________________________ MIDTERM QUIZ No. 1 (Take Home) SECTION: _____________________________ DIRECTION: Write the CAPITAL LETTER of the CORRECT ANSWER on the space provided. Any form of ERASURES is strictly not allowed. 1. If you were running a firm in a perfectly competitive
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total assessment: Answer any five (5) of the following questions. Each question is worth 10 marks; Question 1: (a) Explain the impact of external costs and external benefits on resource allocation; (2.5 marks) Ans : Resources are over - allocated when negative externalities exist because the equilibrium price is too low. Resources are under - allocated when positive externalities exist because the equilibrium price is too high (b)Why are public goods not produced in sufficient quantities
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Lecture 15 The Definite Integral and Area Under a Curve Definite Integral ---The Fundamental Theorem of Calculus (FTC) Given that the function [pic] is continuous on the interval [pic] Then‚ [pic] where F could be any antiderivative of f on a ( x ( b. In other words‚ the definite integral [pic] is the total net change of the antiderivative F over the interval from [pic] • Properties of Definite Integrals (all of these follow from the FTC) 1. [pic] 4. [pic] 2. [pic] 5. [pic]
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CURVE SKETCHING This is a handout that will help you systematically sketch functions on a coordinate plane. This handout also contains definitions of relevant terms needed for curve sketching. Another handout available in the Tutoring Center has 3 sample problems worked out completely. ASYMPTOTES: This handout will discuss three kinds of asymptotes: vertical‚ horizontal‚ and slant. VERTICAL ASYMPTOTES We define the line x = c as a vertical asymptote of the graph of ‚ iff (if and only
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Maximum likelihood methods have been developed in order to construct the most probable phylogenetic tree. The earliest methods of calculating the maximum likelihood used gene frequency data‚ and more recent approaches involve algorithms of amino acid and nucleotide sequences. The general equation for the likelihood L of a phylogenetic tree is defined as the probability of observing the data in a given tree under a specific substitution pattern‚ L=(data│tree). The tree with the highest L value is
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