The following is cost information for the Creamy Crisp Donut Company:

Entrepreneur's potential earnings as a salaried worker = $50,000

Annual lease on building = $22,000

Annual revenue from operations = $380,000

Payments to workers = $120,000

Utilities (electricity, water, disposal) costs = $8,000

Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000

Entrepreneur's forgone interest on personal funds used to finance the business = $6,000

Refer to the data to calculate Creamy Crisp's accounting profit and economic profit.

2) Answer the question on the basis of the following output data for a firm. Assume that the amounts of all nonlabor resources are fixed.

Number of Units of Workers Output 0 2 3 4 5 6 40 90 126 150 165 180

Refer to the data. The marginal product of the sixth worker is?

3) Answer the question on the basis of the following cost data:

Refer to the data. The marginal cost of producing the sixth unit of output is?

4) Answer the question on the basis of the following cost data for a firm that is selling in a purely competitive market:

Refer to the data. If the market price for the firm's product is $32, How many units should the firm produce and what will be the economic profit or loss?

5) ) In the short run, a purely competitive seller will shut down if product price:

A) is greater than MC. B) is less than AVC.

C) equals average revenue. D) is less than ATC.