Homework Help! Economics! Fixed Costs, ect.?

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Homework Help! Economics! Fixed Costs, ect.?




n the production of trash cans a good example of a fixed cost is:



A. Health insurance, plastic and taxes



B. Rent on the factory and managerial salaries



C. Paint, fuel and labor



D. Shipping costs and electricity



E. Product liability insurance and advertising

Timmy owns a shoe store that generates monthly revenue of $47,000. Timmy’s costs associated with rent, materials and labor equals $39,055 per month. Timmy could work as a turkey farmer instead of owning a shoe store which would generate $11,039 in total revenue per month. Timmy’s accounting profit equals _____________ while his economic profit equals ___________.



$47,000, $39,055



$50,094, $7,945



$7,945, - $3,094



$6,391, $2,008



$ - 7,945, $3,094


Update : THANK YOU SOO MUCH<3



And thanks for explaining as well! I understand the questions/answers much better now! ^_^



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