Part #1

a) .Is the following statement true or false?

Accountants and economists see eye to eye on costs and profits.

Please state your position and support it using content from the text or outside sources. Remember to cite your outside sources.

b)."Short-Run Production Theory is the mirror opposite of Short-Run Cost Theory," Is this statement true or false? Take a position and support it using appropriate graphs and content from the text, videos, or outside sources. Please remember to cite sources. Note: Your graphs should be neatly sketched by hand, scanned, and uploaded with your typed response in Canvas.

Part #2

1. Monica owns a modern Blouse Business. Prior to starting her business, she quit her $50,000 a year job teaching 11^th grade. She rents an office space in a strip mall for $20,000 a year and pays wages and salaries for her workers to the tune of $50,000 a year. Her yearly utility and material costs are $4,000 and $20,000 respectively. Her yearly revenues are $150,000.

a.Compute the amount of her accounting costs?

b. Compute the amount of her explicit costs?

c. Compute the amount of her implicit costs

d. Compute the amount of her economic Costs

e. Compute the amount of her accounting profits?

f. Compute the amount of her economic profits?

g. Compute the amount of her normal profits?

h. Compute the amount of her total costs when her economic profits are zero?

2. The table below summarizes the cost and production data for a given firm. Use the formulas below to help you fill the blanks in the table. Please answer questions a-e after filling the empty cells in the table.

Labor (L)	Output (Q)	APP-L	MPP-L	Wages	TFC	TVC	TC	AFC	AVC	ATC	MC
0	0			$10	$50
1	5			$10	$50
2	15			$10	$50
3	30			$10	$50
4	50			$10	$50
5	75			$10	$50
6	95			$10	$50
7	110			$10	$50
8	120			$10	$50
9	125			$10	$50
10	125			$10	$50

a. Which production time period is represented by the data in the table?

b. Please briefly explain your answer to question (a)?

c. Over what input range do marginal returns to labor rise?

d. Over what input range do marginal returns to labor remain constant?

e. Over what input range do marginal returns to labor diminish?