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1. Jane decides to open her own business and earns $50,000 in accounting profit the first year. When deciding to open her own business she turned down three separate job offers with annual salaries of $30,000, $40,000, and $45,000. What is Janes economic profit from running her own business? Select one: o a. $20,000 O b. $5,000 O c. $-65,000 o d. $10,000
2. A firm that finds that MR exceeds MC would be able to improve its profit by Select one: O a. decreasing its output. o b. doing nothing. c. increasing its output. d. raising its price.
3.Moving from point F to point Quantity of Hybrids Produced per Day 800 Moving from point F to point B 600 Moving from point to point G 400 300 200 ???? Moving from point B to point C 0 100 200 400 500 600 I DON'T KNOW YET 800 Quantity of SUV Produced per Day submit Refer to the above graph. Which of the following best represents the situation in which BMW must face a tradeoff between producing SUVs and producing hybrids?
1.ECONOMIC PROFIT:-
Economic profit is defined as the difference between revenue and the all the (explicit cost + opportunity cost).
Economic cost= Revenue-(explicit cost+ opportunity cost)
For the given question, 3 jobs turned out by her are
Earning:- $50000
Economic Cost :-
| Revenue From Business | $50000 |
| Opportunity Cost | $30000 |
| Economic Profit | $ 2000 |
2. For Job 2 :-
| Revenue From Business | $50000 |
| Opportunity Cost | $40000 |
| Economic Profit | $10000 |
3. For Job 3:-
| Revenue Form Business | $50000 |
| Opportunity Cost | $45000 |
| Economic Profit | $5000 |
2. A firm that funds that marginal revenue exceeds marginal cost can improve its profits by decreasing it's outy.
3.All the points that are on the production possibilities frontier (PPF) show the possible combinations of the two cars which the firm can produce.
Hence the correct answer is:
Moving from point B to point C
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This movement represents the tradeoff. The other points F and G are not on the PPF.
