Economics Question
QUESTION 1:
Lola is the owner of a bakery that earns 0 (zero) economic profit. Last year, her total revenue was $165,000, her rent was $10,000, her labor costs were $85,000, and her overhead expenses were $11,000.
a. What were Lola’s total explicit costs?
b. What were Lola’s total implicit costs?
c. Currently, Lola has 8 employees; with 8 employees, her bakery can produce 12 wedding cakes per day. If she hired a ninth employee, she’d be able to produce 16 wedding cakes per day. What is the marginal product, in terms of wedding cakes, of the ninth employee?
QUESTION 2:
Answer the following questions based on the accompanying graph.
- What is the change in revenues associated with the price effect for this firm when the price decreases from $50 to $30?
- What is the change in revenues associated with the output effect for this firm when the price decreases from $50 to $30
- Would the firm gain revenue if it lowered the price from $50 to $30? Explain.
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
