Microeconomics

Learn the toughest concepts covered in Microeconomics with step-by-step video tutorials and practice problems by world-class tutors

The Costs of Production

Revenue, Cost, and Profit

Next Topic

Step 1:Go to college. Step 2:Pass microeconomics. Step 3:??? Step 4:PROFIT

1

concept

Revenue

The video is coming soon
Was this helpful ?
0
2

concept

Explicit and Implicit Cost

clock
5m
Play a video:
Was this helpful ?
0
3

concept

Accounting Profit and Economic Profit

clock
1m
Play a video:
Was this helpful ?
0
4
Problem

Fast Fingers Freddy gives banjo lessons for $50 per hour. One day, he spends 8 hours planting $100 worth of seeds on his farm. If the seeds yield $600 worth of crops, what is his accounting profit and economic profit?

5
Problem

Ricky Smooth opens up a hunch punch stand in his dorm room every Wednesday for two hours. He spends $40 on ingredients and sells $120 worth of hunch punch. In those same two hours, Ricky could have been a nude model for the art department earning $60. Ricky Smooth has an accounting profit of ________ and an economic profit of ________.

6
Problem

Sweetie Nick has dreamt of owning a candy store his whole life. Unfortunately, after a few wrong turns, Sweetie Nick finds himself stuck in a job he hates, earning a nice salary of $100,000, but he is completely dead inside. One day, Sweetie Nick is fed up and decides to quit his job and open a candy store. He takes his $300,000 savings, which were earning 5% interest, and buys a property downtown. In his first year, Sweetie Nick sells $220,000 worth of candy that he purchased for $80,000. He also paid utilities of $2,000 and hired a cashier that earned $16,000 throughout the year. What is Sweetie Nick’s accounting profit and economic profit?

7

concept

Fixed Costs and Variable Costs; Short Run and Long Run

clock
7m
Play a video:
Was this helpful ?
0
8
Problem

A short run cost function assumes that:

9
Problem

A company currently has total costs of $4,096 when producing 128 units. If total fixed costs equal $1,024, what is average variable cost?

10
Problem

Rose incurs $7,200 per month in fixed costs operating her floral shop. She pays her employees $9 per hour and had three assistants working 120 hours this month. Her other variable costs were $800 this month. What are Rose’s total variable costs and total costs this month?