Suppose a department store has two major departments: furniture and clothing. Due to changing consumer tastes that have resulted in falling furniture sales, the department store is deciding whether or not to close its furniture department and devote more space to clothing, which is increasing in popularity. The department store's revenues every three months are $790339 while it retains its furniture department, and the department store estimates revenues will increase to $862278 every three months ifthey close the furniture department. Operating expenses will remain constant at $224317 every three months in either case. Oneoff costs associated with the closure of the furniture department would be $72074 spread evenly over one year. What is the department stores economic prot (every three months) for the year after closing the furniture department? Answer to the nearest whole number and include a negative sign if it is an economic loss (with no decimal places, 25 sign, spaces or commas). M99425 Avocados have been proven to bring many health benets if consumed regularly. Many others including Gavin are huge fans of avocados and have plans to start a new business selling avocados. Assume the market for avocados to be perfectly competitive. Answer the following questions: a. If these firms are able to continue entering the market for avocados, it is likely that they are earning an economic profit. In order to earn an economic profit, firms must ensure that the price is above its ATC . Type ATC for Average Total Cost, AVC for Average Variable Cost, TC for Total Cost or V0 for Variable Cost. |:. Gavin decided to build an avocado farm in Brisbane. It is estimated that Gavin will need to spend $14.55 thousand on farrning equipment costs. Gavin will also need to spend $20.95 thousand on labour and overhead costs. However, it is expected that Gavin will be able to sell 5 tonnes of avocados and gain a revenue of $47.66 thousand from selling these avocados. Calculate the economic profit for Gavin in starting this new project. 85 12.16 thousand. Answer to the nearest two decimal places in thousands. c. Queensland Health agrees that Avocados bring large benets to consumers. They decided to give avocados farmers a subsidy/grant in order to boost the supply of avocados. Will we expect the economic profit for Gavin's avocado farm to increase or decrease? I . Type | for Increase, D for Decrease or U for Unsure