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ECO111 - Individual-Assignment-03 - Nguyễn Thành Công
ECO111 - Individual-Assignment-03 - Nguyễn Thành Công
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STUDENT INFORMATION
Name: PHẠM THỊ ANH THƯ Roll number: HS 186417
Room No: Be 307 Class: MKT1835
Individual Assignment 03
1. Assume you own and manage your own fruit stand. The financial information for the
stand is given below (all values are monthly).
d.Economic profit = TR -
(total implicit and explicit
costs)
e. = 5000 -
(3800 + 1000) = 5000 - 4800
= 200.
f. => Yes, because
economic profit is positiv
g.Economic profit = TR -
(total implicit and explicit
costs)
h. = 5000 -
(3800 + 1000) = 5000 - 4800
= 200.
i. => Yes, because
economic profit is positive.
j. Economic profit = TR -
(total implicit and explicit
costs)
k. = 5000 -
(3800 + 1000) = 5000 - 4800
= 200.
l. => Yes, because
economic profit is positive.
m. Economic profit = TR -
(total implicit and explicit
costs)
n. = 5000 -
(3800 + 1000) = 5000 - 4800
= 200.
o. => Yes, because
economic profit is positive.
p.Economic profit = TR -
(total implicit and explicit
costs)
q. = 5000 -
(3800 + 1000) = 5000 - 4800
= 200.
r. => Yes, because
economic profit is positive.
2. Assume you are currently working in a government job that pays $20,000/year and
you have $40,000 in an account earning 10% interest. You have the opportunity to
buy a fruit orchard that produces $23,000/year in revenue for a price of $50,000. You
have always wanted to work in the fruit industry. Should you buy the orchard?
Explain.
Answer:
This is because the increased revenue from the new machine is offset by the
cost of developing the machine.