Question

1.Suppose you are running your own flower delivery business (called Here Comes the Bloom) and have the following financial information (per year): total revenues from sales are $260,000, labor costs are $85,000, rent is $20,000, materials are $33,000, vehicle related costs (fuel, insurance, maintenance) are $10,000 and utilities are $7,000. You own the delivery van and could rent it out for $6,000 per year if you weren’t using it to run your own business. You have a standing offer to go to work for your brother at his crystal shop (called The People’s Quartz) at a salary of $55,000 per year. If you worked for your brother, you would also have time to pursue your passion and sell the hemp bracelets you make at various craft fairs and festivals. This would bring in a profit of $9,000 per year. You do not have time for your bracelet business or to work for your brother if you are running your flower business.

a.Calculate both the accounting and economic profits from running Here Comes the Bloom.

b.Based on the calculations in part a, what should you choose to do? Explain why briefly. Give a practical interpretation of the economic profit number as if explaining to a friend that has not taken economics.

2.Suppose Debbie notices the following relationship between how many workers she hires to work on her fishing boat, and how much fish her company catches (per day):

Workers | Qty of Fish (in pounds) | Marginal Product | Total Cost | Average Total Cost | Marginal Cost |

0 | 0 | ||||

1 | 120 | ||||

2 | 220 | ||||

3 | 300 | ||||

4 | 360 | ||||

5 | 400 |

a.Use the information in the table to complete the marginal product column. Explain briefly why the marginal productivity might follow this pattern.

b.Suppose Debbie has a fixed cost of $100 per day to rent the boat
and equipment. She must pay each worker $120 per day. Use this
information to complete the total cost, average total cost, and
marginal cost columns in the table. a. Use the information in the
table to complete the marginal product column. Explain briefly why
the marginal productivity might follow this pattern.

Answer #1

Please do it by type not pics,
1.Suppose Debbie notices the following relationship between how
many workers she hires to work on her fishing boat, and how much
fish her company catches (per day):
Workers
Qty of Fish (in pounds)
Marginal Product
Total Cost
Average Total Cost
Marginal Cost
0
0
1
120
2
220
3
300
4
360
5
400
a.Use the information in the table to complete the marginal
product column. Explain briefly why the marginal productivity might...

Chapter 1 Running Your Own MNC
Developing Your Idea
Create an idea for your own MNC to conduct international business.
Your idea should be simplified to the degree that you could
possibly implement it someday. However, your idea should also be
sufficiently creative to be successful if done properly. Your idea
should focus on one country and one foreign currency, since many
MNCs are focused in this manner when they are first created. So
that you can recognize the issues...

(Business example of last dollar rule. Assume that we have
normal convex isoquants). Suppose you are running a business and
face a low skill wage rate of $9 per hour and a high skill wage
rate of $18 per hour. If the marginal product of low skill labor
for your business is 50 units of output per hour, and the marginal
product of capital is 75 units of output per hour, are you using
the cost-minimizing combination of the two...

Suppose you have decided to start a business producing and
selling a product of your choice from the following options: custom
birthday cakes, lawn mowers or sports jackets.
For your essay, answer the following questions related to your
product:
Briefly describe the product you would produce and sell. What
market will you target this product for? At what price would you
sell your product? Make a projection of your sales in units for the
first year of operations.
Make a...

Many of you will some day own your own business. One rapidly
growing opportunity is no- frills workout centers. Such centers
attract customers who want to take advantage of state-of-the-art
fitness equipment but do not need the other amenities of
full-service health clubs. One way to own your own fitness business
is to buy a franchise. Snap Fitness is a Minnesota-based business
that offers franchise opportunities. For a very low monthly fee
($26, without an annual contract), customers can access...

You plan to open your own wine business. The cost of plant,
property and equipment is $500,000. You already have the money for
the initial cost which you could invest at the same level of risk
and expect to earn 10%. You think you can sell 1 million
bottles/year at $1/per bottle. Your costs are $200,000/per year to
keep the factory running plus $0.50/bottle produced. Your tax rate
is 50% and you plan to operate this business for 5-years. You...

1) Do you want to own your own candy store? Wow! With some
interest in running your own business and a decent credit rating,
you can probably get a bank loan on startup costs for franchises
such as Candy Express, The Fudge Company, Karmel Corn, and Rocky
Mountain Chocolate Factory. Startup costs (in thousands of dollars)
for a random sample of candy stores are given below. Assume that
the population of x values has an approximately normal
distribution.
96
176...

Suppose you are given the following partially complete table.
You have a meeting with the chief financial officer in fifteen
minutes and he is expecting this information in its entirety. Note:
all labor units are paid equally and labor is the firm’s only
variable input.
Labor
Q
Fixed Cost Variable
Cost
Total
Cost
=========================================================
0
0
______
$0
______
1
1,500
______
______
______
2
4,500
______
______
______
3
6,000
______
______
______...

Suppose that as a consumer you have $34 per month to spend on
munchies—either pizzas, which cost $6 each, or Twinkies, which cost
$4 each. Suppose further that your preferences are given by the
following total utility table. Create a set of marginal utility
tables for each product, like the ones below. Remember that they
must show diminishing marginal utility as more of each product is
consumed. Create the corresponding set of total utility tables for
each product. Graph the...

Financial information for the project:
1. You decide to open a small business in Charleston, WV that will
cater primarily to busy office workers downtown. You are going to
offer a gourmet box lunch to be delivered to any office with a
minimum number of 5 orders. This lunch will include a gourmet
sandwich, a bag of chips, a cookie, and a bottle of water. Because
you are using only the finest ingredients, you will charge $9.15per
lunch.
2. The...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 6 minutes ago

asked 7 minutes ago

asked 8 minutes ago

asked 24 minutes ago

asked 53 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago