1. Emily recently graduated with a B.A. in economics and was offered a job with a...

  

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1. Emily recently graduated with a B.A. in economics and was offered a job with a small but growing company for $38 400 per year. About the same time, Emily inherited $60 000. She decided to pass up the job and use her inheritance to purchase a bubble tea shop rather than put the money into a bond fund (as her uncle suggested), which would have paid 5 percent per year interest. Emily works full-time at her new business, and at the end of the year she had revenues of $81 000 and total explicit costs of $42 000. a. What was Emily's accounting profit or loss for the year? b. What was her economic profit or loss for the year? 2. Table 6.5 shows the total product for a firm. Complete the average and marginal products. TABLE 6.5 Marginal Product Units of Total Average Product Labour Product 12 2 30 3. 54 68 80 84 7 77 3. a Complete Table 6.7 for Bannister Inc. b. How many workers are being used when the point of diminishing returns is first apparent? c. How many workers are being used when total product is at a maximum? d. What is the most productive output? TABLE 6.7 Total Product Number Average Product Marginal Product of Workers 2 5 3 3 4 14 6 7 15 | |- ||| || 1. Emily recently graduated with a B.A. in economics and was offered a job with a small but growing company for $38 400 per year. About the same time, Emily inherited $60 000. She decided to pass up the job and use her inheritance to purchase a bubble tea shop rather than put the money into a bond fund (as her uncle suggested), which would have paid 5 percent per year interest. Emily works full-time at her new business, and at the end of the year she had revenues of $81 000 and total explicit costs of $42 000. a. What was Emily's accounting profit or loss for the year? b. What was her economic profit or loss for the year? 2. Table 6.5 shows the total product for a firm. Complete the average and marginal products. TABLE 6.5 Marginal Product Units of Total Average Product Labour Product 12 2 30 3. 54 68 80 84 7 77 3. a Complete Table 6.7 for Bannister Inc. b. How many workers are being used when the point of diminishing returns is first apparent? c. How many workers are being used when total product is at a maximum? d. What is the most productive output? TABLE 6.7 Total Product Number Average Product Marginal Product of Workers 2 5 3 3 4 14 6 7 15 | |- ||| ||

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1 aThe Accounting profit or loss for the year is calculated as the net income for a company which is ... View the full answer