Jiah asked:

Tanya imports sweaters from Peru and sells them from her home. She collects $400,000 in revenue a year, and spends $200,000 on the sweaters and shipping costs, as well as $25,000 on accounting services and utilities. She used to make $100,000 per year working for an advertising agency. Now she works out of the basement of her house, for which she doesn’t have any other marketable use. She has no other expenses.

1. Assume that Tanya is interested only in making the most income and that she needs to choose between continuing to run this Peruvian sweater business and returning to her old job in advertising. Tanya should:

A. Continue to run the Peruvian sweater business

B. Return to working for the advertising company

I think it’s B.

Nader G asked:

Tanya imports sweaters from Peru and sells them from her home. She collects $400,000 in revenue a year, and spends $200,000 on the sweaters and shipping costs, as well as $25,000 on accounting services and utilities. She used to make $100,000 per year working for an advertising agency. Now she works out of the basement of her house, for which she doesn’t have any other marketable use. She has no other expenses.

Assume that Tanya is interested only in making the most income and that she needs to choose between continuing to run this Peruvian sweater business and returning to her old job in advertising. Tanya should:

A) Continue to run the Peruvian sweater business
B) Return to working for the advertising company

thanks!

Invincible asked:

Tanya imports sweaters from Peru and sells them from her home. She collects $400,000 in revenue a year, and spends $200,000 on the sweaters and shipping costs, as well as $25,000 on accounting services and utilities. She used to make $100,000 per year working for an advertising agency. Now she works out of the basement of her house, for which she doesn’t have any other marketable use. She has no other expenses.

Tanya’s accounting and economic profit is:

Please Explain why also. Thanks

vik r asked:

Tanya imports sweaters from Peru and sells them from her home. She collects $400,000 in revenue a year, and spends $200,000 on the sweaters and shipping costs, as well as $25,000 on accounting services and utilities. She used to make $100,000 per year working for an advertising agency. Now she works out of the basement of her house, for which she doesn’t have any other marketable use. She has no other expenses.

2.2. Tanya’s economic profit is:

A. $75,000

B. -$25,000

C. $175,000

D. $100,000

Invincible asked:

Tanya imports sweaters from Peru and sells them from her home. She collects $400,000 in revenue a year, and spends $200,000 on the sweaters and shipping costs, as well as $25,000 on accounting services and utilities. She used to make $100,000 per year working for an advertising agency. Now she works out of the basement of her house, for which she doesn’t have any other marketable use. She has no other expenses.

Question: Assume that Tanya is interested only in making the most income and that she needs to choose between continuing to run this Peruvian sweater business and returning to her old job in advertising. Tanya should:

A. Return to working for the advertising company

B. Continue to run the Peruvian sweater business

Nader G asked:

Tanya imports sweaters from Peru and sells them from her home. She collects $400,000 in revenue a year, and spends $200,000 on the sweaters and shipping costs, as well as $25,000 on accounting services and utilities. She used to make $100,000 per year working for an advertising agency. Now she works out of the basement of her house, for which she doesn’t have any other marketable use. She has no other expenses.

Tanya’s economic profit is:

A) 75,000
B) 100,000
C) -25,000
D) 175,000

vik r asked:

Tanya imports sweaters from Peru and sells them from her home. She collects $400,000 in revenue a year, and spends $200,000 on the sweaters and shipping costs, as well as $25,000 on accounting services and utilities. She used to make $100,000 per year working for an advertising agency. Now she works out of the basement of her house, for which she doesn’t have any other marketable use. She has no other expenses.

2.1. Tanya’s accounting profit is:

A. $75,000

B. -$25,000

C. $200,000

D. $175,000

Nader G asked:

anya imports sweaters from Peru and sells them from her home. She collects $400,000 in revenue a year, and spends $200,000 on the sweaters and shipping costs, as well as $25,000 on accounting services and utilities. She used to make $100,000 per year working for an advertising agency. Now she works out of the basement of her house, for which she doesn’t have any other marketable use. She has no other expenses.

Tanya’s accounting profit is:
A) -25,000
B) 175,000
C) 200,000
D) 75,000

Frank The Tank asked:

Maria imports sweaters from Peru and sells them from her home. She collects $400,000 in revenue a year, and spends $200,000 on the sweaters and shipping costs, as well as $25,000 on accounting services and utilities. She used to make $100,000 per year working for an advertising agency. Now she works out of the basement of her house, for which she doesn’t have any other marketable use. She has no other expenses.

If Maria’s Accounting profit is: $175,000.00
What is Maria’s economic profit?

Economic profit is
The value that remains after all costs, including the opportunity costs of the operator’s labor and capital, have been subtracted from gross

Frank Rizzo asked:

Maria imports sweaters from Peru and sells them from her home. She collects $400,000 in revenue a year, and spends $200,000 on the sweaters and shipping costs, as well as $25,000 on accounting services and utilities. She used to make $100,000 per year working for an advertising agency. Now she works out of the basement of her house, for which she doesn’t have any other marketable use. She has no other expenses.

If Maria’s Accounting profit is: $175,000.00
What is Maria’s economic profit?

Economic profit is
The value that remains after all costs, including the opportunity costs of the operator’s labor and capital, have been subtracted from gross