Problems

Answers to the Accy and Econ profits -

1. Rev 100 k - Accy expenses 10k= 90 k - Econ wages 40k - forgone interest 1k = 49 k

5. Part A.) The bus is cheaper 20 versus 32 cost. B.) Plane: 40 versus 60 cost

APIP Workbook Act- Answer Accy profit=300 k-220k=80 k

Econ profit= subtract 6k(interest), rent forgone 14k, 50 k labor= 70 k implicit expenses= 300 Rev-(220+70) Exp=10k