I get $200 revenue from the sale of my product each day. I rent the factory that I use for $90 a day. The raw materials of the operation cost $115 a day. I do all the work myself. Both jobs are equally attractive as far as the work is concerned. Recently, a competitor offered me $30 a day to work for him. My accounting profit is , and my economic profit is .

Accounting loss of $5

Economic loss of $35

Explanation:

Accounting profit is the net of revenue and Explicit cost. Explicit costs are the cost which actually incurred or paid.

On the other hand the economic profit is the net of revenue, Explicit and Implicit costs. Implicit value is the opportunity costs of choosing the alternative.

Implicit cost = $30

Explicit cost = 90 + 115 = $205

Accounting Profit = Revenue - Explicit costs = $200 - $205 = ($5)

Economic Profit = Revenue - Explicit cost - Implicit cost = $200 - $205 - $30

Economic Profit = ($35)

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi