Research Paper on "Economic Summary Report: The Lemonade Stand Business"
Research Paper 5 pages (1835 words) Sources: 1+
[EXCERPT] . . . .
In the first season the owners were energetic and highly motivated with explicit revenues amounting to 177.5, which was a good start for the Lemonade Stand. However, in subsequent seasons, the implicit revenues reduced by $15 due to the challenges such as weather variations and insufficient capital, which interfered with the operations of the business. However, the assets still increased as they were proud of running their own business.The implicit costs show the opportunity costs incurred for the profits that were not earned. For instance, in the first season, implicit expenses amounted to 150 because a lot of the owners' time and efforts was used in purchasing equipment instead of increasing the net income and expanding operations. Implicit expenses increased by $5.64 in the second season and $57.23 in the third season because the business would have gained more revenues had the owners been risk seekers and financed with debt in the second season; and invested its cash in income generating activities in the third season. The decision to operate the business for only 7 hours instead of 8 hours also came at a lost opportunity to earn the business and extra $70. In all the three seasons, however, the total revenue exceeded the total costs which resulted in a positive economic profit. This indicates that the business can compete effectively in the markets.
Conclusion
From an economic viewpoint, the lemonade stand business is a viable business because even if its assets and resources might have been used in another way, the economic and accounting profit would still sustain the business. Both profits are sufficient, particularly because they cover the exp
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How to Reference "Economic Summary Report: The Lemonade Stand Business" Research Paper in a Bibliography
“Economic Summary Report: The Lemonade Stand Business.” A1-TermPaper.com, 2015, https://www.a1-termpaper.com/topics/essay/economic-summary-report-lemonade/6783836. Accessed 29 Sep 2024.
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