The following is cost information for the Creamy Crisp Donut Company:

Entrepreneur's potential earnings as a salaried worker = $50,000
Annual lease on building = $22,000
Annual revenue from operations = $380,000
Payments to workers = $120,000
Utilities (electricity, water, disposal) costs = $8,000
Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000
Entrepreneur's forgone interest on personal funds used to finance the business = $6,000

Refer to the data. Creamy Crisp's total economic costs are:

Creamy Crisp Donut Company total economic costs is $206,000.

The Firm's Accounting Cost is $150,000

The Firm's Accounting Profit is its Revenue Less its Accounting Costs = $380,000 minus $150,000 = $230,000

The Firm's Economic Profit on the Other Hand is its Revenue Less its Economic Costs = $380,000 minus $206,000 = $174,000

Explanation:

Economic Costs is a term used by Economists to consider the true recognizable costs of taking on a particular course of Action or Venture or Project.

This implies, that Economic Costs = Accounting Costs + Opportunity/Implicit Costs of Projects/Ventures Foregone.

Whereas Accounting Costs recognizes costs attributable ONLY to the project or Venture a Business or Individual have invested in, Economic Costs goes a step further to include the Lost Benefit of not considering the alternatives to the Venture/Project currently undertaken.

From the data provided

A. Our Accounting Costs are:

Total Accounting Costs = $150,000

B. Our Implicit/Opportunity Costs are:

Total Implicit/Opportunity Costs = $56,000

This therefore puts our Economic Costs as $206,000 (i.e. Accounting Costs + Implicit/Opportunity Costs)

Notice we didn't consider the Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000. This is because it doesn't relate to the Current Venture of Creamy Crisp Donut Company and neither does it relate to an opportunity the entrepreneur had to forego to run the existing Donut Company.

In the Future he may choose to run both businesses concurrently or forego of one. But until then it doesn't account yet as an opportunity foregone but a POTENTIAL earning.

sound is invisible, but sometimes we can feel it. when a kettle-drum is thumped with a stick that time the tight drum skin moving up and down very quickly for some time and then it pumped sound waves into the air. loudspeakers also work in a similar manner.

components of a speaker:

electromagnet

in order to translate an electrical signal into an audible sound, an electromagnet is used in looudspeakers

  suspension

suspension is used to   center the voice coil in the gap of the magnet and it exerts a restoring force to keep it there. suspension is used to limits the maximum mechanical excursion of the diaphragm and voice coil.

voice coil

voice coil is a coil of wire which is attached to the apex of a loudspeaker cone. it provides the motive force to the cone by the reaction of a magnetic field to the current passing through it.

cone

in a   loudspeaker, a   thin, semi-rigid membrane attached to the voice coil, which moves in a magnetic gap due to which it vibrates   and produced sound. it is known as diaphragm and it can also be called a cone, though not all speaker diaphragms are cone-shaped.

surround

surround is also known as front suspension. surround is used to join the cone to the chassis. together with the suspension it controls the cone excursion, and it is also used to   determine how energy which is   travelling through the cone is absorbed, and how the speaker limits when it reaches the ends of its travel.

dustcap

dustcap is used to protect the voice coil from dust and dirt. it is a part of the cone.

how speaker work

the outer part of the cone is fastened to the outer part of the loudspeaker's circular metal rim. the inner part is fixed to   voice coil that sits just in front of a permanent magnet . when loudspeaker is hooked up to a stereo, electrical signals feed through the speaker cables into the coil. it will convert the coil into an electromagnet magnet . when electricity flows back and forth in the cables, the electromagnet either repels or attract the permanent magnet. this moves the coil back and forth, and it pull and push the loudspeaker cone. like a drum skin vibrating back and forth, the moving cone pumps sounds out into the air.in this way loudspeakers works.

typically a loft will include modern kitchen and bathrooms, this increases the price tag. lofts also have a good amount of open space, this requires more heating and electricity. lofts are also in older buildings, this means that maintaining the location increases the bill. keep in mind this is without talking about the high state and property taxes.

i hope this you! : )