Help For Your Introductory Economics Course

It’s a really big week in ECO-201.  Have no fear, your resources for survival are here… Milestone Two Resources: How to use the spreadsheet to create a graph for the supply and demand section ***Use the link in the announcements of Brightspace or the General Questions Discussion Board to access the Excel spreadsheet that will help you create your required graphical representation of data*** Milestone Two Tips: How to Write an Exemplary Section on Supply and Demand (Example Included) Milestone Two Tips: Writing an Exemplary Section on Elasticity of Demand Milestone Two Tips on Critical Element “Price Elasticity of Demand: Pricing Decisions” Tips on Milestones Two and Three: Help With Using Financial Statements Milestone Two Tips to Get Started with Writing About Demand Milestone Two Tips to Get Started with Writing About Supply Milestone Two Rubric Milestone Two Video APA guidelines Historical Webinars on the  ECO YouTube Channel Homework 4 Resources: Sample Problem: Economic P...

Kirsten is earning $40,000 per year as a stylist in Sally’s Salon. She has worked hard to save $60,000 and is currently earning 5% annual interest on her savings account. She decides to quit her job at Sally’s Salon and uses her savings to open her own hair salon. In the first year of ownership, her salon earns revenues of $200,000 and has explicit costs of $157,000. What is Kirsten’s profit (or loss) in the first year? Economic profit is the total revenues minus total opportunity costs of all inputs used, or the total of all implicit and explicit costs. For this example we know the following for the first year: Revenue = $200,000 Explicit costs = $157,000 The implicit costs include Kirsten’s foregone salary from giving up her previous job of $40,000 for the year and lost interest from invested savings ($60,000 saved * 5% annual interest so the interest forgone for the year is $3,000) Economic profit = Revenues – explicit costs – implicit costs Economic profit = $200,000 – 157,000 – 40...