Donnie's Donuts incurs 450,000 per year in explicit costs and ...

[stevenposner]

Donnie's Donuts incurs 450,000 per year in explicit costs and 200,000 in implicit costs. The bakery earns 800,000 in revenues and has 2 million in net worth. Based on this information, what is the accounting profit for Donnie's Donuts?
 
  A) 150,000 B) 350,000 C) 600,000 D) 1.2 million

Question 2

What would happen in the market for knee replacement surgery if insurance companies started to cover a smaller portion of the cost of the surgery, and fewer doctors decide to enter the field of joint replacement surgery?
 
  A) Supply will decrease, but this will not shift the demand curve.
  B) Demand will decrease and supply will increase.
  C) Demand and supply will both decrease.
  D) Demand will decrease, but this will not shift the supply curve.

[Cnarkel]

Answer to Question 1

B

Answer to Question 2

C

[stevenposner]

Thanks for the timely response, appreciate it

[diana chang]

Wow, this really help