A photocopy shop can produce its daily output of 10,000 copies with either of two processes...

 

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A photocopy shop can produce its daily output of 10,000 copies with either of two processes Process A uses 3 workers and 8 photocopy machines Process Buses 4 workers and 4 photocopy machines a If each worker's daily wage is $120, and the daily rental (as well as wear and tear) of a photocopy machine is $50, the shop's owner will choose Process [[(Click to select) because with Process A total daily costs of employing capital and labour are $ Process B they are $ and with b Besides the costs of labour and capital, the owner daily pays $30 in building rent and $10 in business taxes The shop's daily explicit costs are therefore $ c. If the shop's price per photocopy is 5010 e 10 cents), the daily accounting profit is $ d. The owner estimates that she could earn $230 a day if she managed another shop instead of her own shop and the $200,000 she invested in her business could earn $30 a day if she put it into her friend's business venture The shop's daily implicit costs are $ The shop's daily economic costs are S e The shop's daily economic profit is 5 The owner Click to select consider closing down her business because the shop is making a [Click to select economic profit A photocopy shop can produce its daily output of 10,000 copies with either of two processes Process A uses 3 workers and 8 photocopy machines Process Buses 4 workers and 4 photocopy machines a If each worker's daily wage is $120, and the daily rental (as well as wear and tear) of a photocopy machine is $50, the shop's owner will choose Process [[(Click to select) because with Process A total daily costs of employing capital and labour are $ Process B they are $ and with b Besides the costs of labour and capital, the owner daily pays $30 in building rent and $10 in business taxes The shop's daily explicit costs are therefore $ c. If the shop's price per photocopy is 5010 e 10 cents), the daily accounting profit is $ d. The owner estimates that she could earn $230 a day if she managed another shop instead of her own shop and the $200,000 she invested in her business could earn $30 a day if she put it into her friend's business venture The shop's daily implicit costs are $ The shop's daily economic costs are S e The shop's daily economic profit is 5 The owner Click to select consider closing down her business because the shop is making a [Click to select economic profit