Economic Week 1 Essay

918 words - 4 pages

Chapter 1 Applied Problem 1

1. At the beginning of the year, an audio engineer quit his job and gave up a salary of $175,000 per year in order to start his own business, Sound Devices, Inc. The new company builds, installs, and maintains custom audio equipment for businesses that require high-quality audio systems. A partial income statement for Sound Devices, Inc., is shown below:

2010
Revenue
Revenue from sales of product and services $970,000

Operating costs and expenses
Cost of products and services sold $355,000
Selling expenses $155,000
Administrative expenses $ 45,000

Total Operating costs and expenses $555,000

Income from operations ...view middle of the document...

B. What is accounting profit in 2010?

Accounting Profit = Total Revenue – Explicit Costs

$970,000 - $893,000 = $77,000

C. What is economic profit in 2010?

Economic Profit = Total Revenue – Explicit Cost – Implicit cost

$970,000 - $893,000 - $175,000 = -$98,000

D. Given your answer in part c, evaluate the owner’s decision to leave his job to start Sound Devices.?

Using the economic profit of 2010 the owner starting his own company Sound Devices was not a profitable one. He is in the negative of $98,000. He is better off working at the established firm with his annual income of $175,000.
Chapter 2: Applied Problems 2 and 4
Problem 2:
Florida Citrus Mutual, an agricultural cooperative association for citrus growers in Florida, needs to predict what will happen to the price and output of Florida oranges under the conditions below. What are your predictions? For each part, sketch a graph showing the appropriate demand and supply analysis,
A. A major freeze destroys a large number of the orange trees in Florida.

The supply curve of oranges in Florida will decrease which will caused the price for orange juice products to increase. The demand curve will go up since there are less supply of oranges until it reach equilibrium price that the customers are willing to pay.

B. The scientists in the agricultural extension services of the University of Florida discover a way to double the number of oranges produced by each orange tree.
The supply curve will increase due to the agricultural knowledge of producing double the number of oranges. Based on the information that there are plenty of oranges out there, demand will decrease if the price is too high which will drive the price to drop.

C. The...

Other Papers Like Economic Week 1

Eco 372 Final Exam (Latest) - Assignment

1825 words - 8 pages 5 years. This article covers the basic of ECO 372 Final Exam Assignment from UOP. Other topics in the class are as follows: ECO 372 Week 1 DQ1 (3 Responses) ECO 372 Week 1 DQ 2 (3 Responses) ECO 372 Week 1 DQ 3 (3 Responses) ECO 372 Week 1 Complete ECO 372 Week 2 DQ 1 (3 Responses) ECO 372 Week 2 DQ 2 (3 Responses) ECO 372 Week 2 DQ 3 (3 Responses) ECO 372 Week 2 Fundamentals of Macroeconomics Paper ECO 372 Week 2 Economic Forecasting

Eco 561 Final Exam Essay

1884 words - 8 pages Author This article covers the topic for the University Of Phoenix ECO 561 Final Exam. The author is working in the field of education from last 5 years. This article covers the basic of ECO 561 Final Exam from UOP. Other topics in the class are as follows: ECO 561 Week 1 DQ 1 ECO 561 Week 1 DQ 2 ECO 561 Week 1 DQ 3 ECO 561 Week 1 DQ 4 ECO 561 Week 1 Individual Assignment Week one Knowledge Check ECO 561 Week 1 Complete ECO 561 Week 2 DQ 1

Mgt 521 Final Exam Latest Question Answers

1870 words - 8 pages 1. ________ is defined as a business firm’s intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society. • Social screening • Social responsibility • Social obligation • Values-based management 2. The balanced scorecard measures organizational performance against previously established standards. Which of the four functions of management relates most closely to

Mgt 521 Final Exam Latest Question Answers

1870 words - 8 pages 1. ________ is defined as a business firm’s intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society. • Social screening • Social responsibility • Social obligation • Values-based management 2. The balanced scorecard measures organizational performance against previously established standards. Which of the four functions of management relates most closely to

Eco 561 Final Exam Latest University of Phoenix

1856 words - 8 pages B. markets are closely competitive markets with close to zero economic profits C. markets are oligopoly markets with strong collusion agreements D. markets are monopolistic competitive markets Find the quiz answers here ECO 561 Week 1 Quiz or Knowledge Check (Latest) 16) All economies of scale are achieved at the minimum of A. average total cost B. total cost C. average variable cost D. average fixed cost 17) Inflation is

FIN 571 Week 5 Connect Problems

1096 words - 5 pages . Find the Week 1 Connect Problems answers here FIN 571 Week 1 Connect Problems 3. The primary reason that company projects with positive net present values are considered acceptable is that: • they create value for the owners of the firm. • the project's rate of return exceeds the rate of inflation. • they return the initial cash outlay within three years or less. • the required cash inflows exceed the actual cash inflows. • the

Kk Course Title

2390 words - 10 pages | | | | |allocation. | | | |Reading |Read the Week One Read Me First. | | | |Reading |Read Ch. 1 of Ethics & Issues in Contemporary Nursing

Working With People

310 words - 2 pages | | | | |Q & A | | Assessment Plan |Assignment |1 |2 | |Remarks | |Week of issue |2 |9 | | | |Week of submission

Why Do I Need to Add a More Descriptive Title?

1399 words - 6 pages , commencing in the second week of term, will be held on a weekly basis on Monday’s, Tuesday’s, Thursday’s and Friday’s. Please ensure that you sign up for a tutorial session during the first week of term. Tutorial lists will be posted on Moodle and no more than seven names are allowed in any one tutorial session. Lecture Topics Week 1. The concept of Strategy and the Prescriptive - Emergent dichotomy. Week 2. Managing Strategic

Course Outline

5423 words - 22 pages continues into the exam study period. The schedule of Pitstop times for this course will be announced on the Course website. COURSE DETAILS 1 Teaching Times and Locations Lectures start in Week 1and end in Week 12. Tutorials start in Week 2 and end in Week 13. A full list of tutorials, times and names of tutors will be available on the Course website. The lecture times and locations are shown in the table below. |Lecture Group A

That Are Involved

2554 words - 11 pages globalization. 1.2 List the major drivers of globalization. 1.3 Explain some effects of globalization. 1.4 Compare and contrast the role of economic integration in promoting global business. 1.5 Relate the stage of economic development of an economically integrated region to potential business opportunities. 12/3/12 Readings Read Ch. 1 of International Business. Read Ch. 2 of International Business. Read Ch. 3 of International Business

Related Essays

Hcs 440 Week 1 Individual Economic Terms And Health Care History

358 words - 2 pages This document MGT 350 Week 2 Learning Team Case Analysis Project Plan Critical Thinking Strategies in Decision Making contains a solution on following task: "Decisions in Paradise Case Analysis Project Plan. Submit the following: 1) Summary of Case 2) Company selected 3) Action Plan, e.g. who and how will this paper be researched and written. UMUC CMIT 425 Security Policy Project Using the GDI Case Study, complete the Security Policy

His 204 Uop Tutorials / Uophelp

565 words - 3 pages HIS 204 Entire Course HIS 204 Week 1 DQ 1 HIS 204 Week 1 DQ 2 HIS 204 Week 1 Quiz HIS 204 Week 2 DQ 1 HIS 204 Week 2 DQ 2 HIS 204 Week 2 Quiz HIS 204 Week 3 Assignment Women Right, Sacrifices & Independence HIS 204 Week 3 DQ 1 HIS 204 Week 3 DQ 2 HIS 204 Week 4 DQ 1 HIS 204 Week 4 DQ 2 HIS 204 Week 4 Quiz HIS 204 Week 5 DQ 1 HIS 204 Week 5 DQ 2 HIS 204 Week 5 Final Paper Women Right’s, Sacrifices and Independence

Ops 571 Final Exam Latest University Of Phoenix Tutoring

1615 words - 7 pages (Work Breakdown Structure) Click here and download OPS 571 Week 1 Process Design Matrix and Summary 7. Which of the following is an element that addresses elimination of waste under lean production? • Kanban production control system • Production ahead of demand • Minimized run times • Group plant loading technology 8. In most cases, demand for products or services can be broken into several components. Which of the following is

Ops 571 Final Exam Latest Uop Final Exam Questions With Answers

1539 words - 7 pages Final Exam. The author is working in the field of education from last 5 years. This article covers the basic of OPS 571 Final Exam Assignment from UOP. Other topics in the class are as follows: OPS 571 Week 1 DQ 1 OPS 571 Week 1 DQ 2 OPS 571 Week 1 DQ 3 OPS 571 Week 1 DQ 4 OPS 571 Week 1 Process Design Matrix and Summary OPS 571 Week 1 Complete OPS 571 Week 2 DQ 1 OPS 571 Week 2 DQ 2 OPS 571 Week 2 DQ 3 OPS 571 Week 2 DQ 4 OPS 571 Week