Uncategorized / 01.05.2019
Question: Nk spaces of this table. Note that Q, VC. TC, AFC. AVC. ATC. an o output, variable cost, total co…
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Uncategorized
Uncategorized / 01.05.2019
Question: Jarmy economics ex MARTHA MICRO E- Question 1. Profits and opportunity costs (7 points) Assume yo…jarmy economics ex MARTHA MICRO E- Question 1. Profits and opportunity costs (7 points) Assume you own and manage your own fruit stand. The financial information for the stand is given below (all values are monthly). Wholesale fruit cost Labor Fruit stand lease Monthly revenue $2,000 $800 $1,000 $5,000 Answer each of the following, based on the information provided. Estimate your monthly accounting profit (1 point) a. b. If your other employment opportunity is to earn $1000 per month working at a t-shirt stand (and you are equally happy selling fruit or t-shirts), what is your economic profit? Should you continue selling fruit? (3 points) What happens to your economic profit if you really enjoy selling t-shirts and would be willing to give up $250 per month to work selling t-shirts rather than fruit? Should you continue selling fruit? Why/why not (one sentence)? (3 points) c. Question 2. Monopoly (4 points)
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