Given: Sales of $14 Million;implicit Costs of $3 Million;and Explicit

question 220

Essay

Given: Sales of $14 million;implicit costs of $3 million;and explicit costs of $12 million.Find (a)accounting profit;and (b)economic profit.

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Definitions:

Competition

The rivalry among businesses or individuals for resources, customers, and market share.

High Wages

Refers to compensation levels that are significantly above the average for a job or industry, typically in response to skill shortages, high demand, or exceptional performance.

High Productivity

The state of achieving a significant amount of output per unit of input, enhancing efficiency and effectiveness in production or work.

High Earnings

Refers to income levels that are significantly above the average or median for a given demographic or region.