1. Determine whether each of the following is an explicit cost or an implicit cost: explain why

a.. payments for labor purchased in the labor market

b. A firm's use of a warehouse that it owns and that could be rented to another firm

c. Rent paid for the use of a warehouse not owned by the firm

d. The wages that owners could earn if they did not work for themselves

2.Calculate the accounting profit or loss as well as the

economic profit or loss in each of the following situations and explain the process

a.

A firm with total revenues of $150 million, explicit cost of $90 million, and implicit costs

of $40 million

b.

A firm with total revenues of $125 million, explicit cost of $100 million, and implicit

costs of $30 million

c.

A firm with total revenues of $100 million, explicit cost of $90 million, and implicit costs

of $20 million

d.

A firm with total revenues of $250,000, explicit cost of $275,000, and implicit costs of

$50,000

3.As a farmer, you must decide how many times during the year to plant a new crop. Also, you must decide how far apart to space the plants. Will diminishing returns be a factor in your decision making? if so, how will it affect your decisions?

4.Case study:

Concession stands account for well over half the profits at most theaters. Given this, what are the benefits of the staggered movie times allowed by multiple screens? explain it