Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Question 13 4 pts Leah is the owner of a sunflower shop that earns 0 (zero) economic profit. Last year, her total revenue was $145,000,
Question 13 4 pts Leah is the owner of a sunflower shop that earns 0 (zero) economic profit. Last year, her total revenue was $145,000, her rent was $12,000, her labor costs were $65,000, and her overhead expenses were $15,000. a. What were Leah's total explicit costs? b. What were Leah's total implicit costs? c. Currently, Leah has 7 employees; with 7 employees, her sunflower shop can produce 12 wedding bouquets per day. If she hired an eighth employee, she'd be able to produce 16 wedding bouquets per day. What is the marginal product, in terms of wedding bouquets, of the eighth employee? Edit View Insert Format Tools Table T
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started