The accounting profit of Jarod based on the information regarding rent, wages, etc given will be $55000.
It should be noted they the formula for calculating accounting profit will be:
= Total revenue - Explicit cost
Total revenue will be:
= $65 × 4000
= $260,000
Explicit cost is the direct cost that a business spends. This will be:
= $60000 + $120000 + $25000
= $205,000
Therefore, the accounting profit will be:
= $260000 - $205000
= $55,000
The accounting profit is $55000.
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Answer:
12.71%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
= 4% + 1.34 × 6.5%
= 4% + 8.71%
= 12.71%
The (Market rate of return - Risk-free rate of return) is also called market risk premium and the same is used in the computation part. We ignored the bets of Delta
Answer:
B. she is confusing between price elasticity of demand and income elasticity of demand.
Explanation:
Income elasticity of demand measures the change of quantities demanded for a particular good to a change in its income.
It is therefore calculated as the ratio of the percentage change in quantity demanded to the percentage change in income.
Price elasticity of demand is a measure of the change in the quantity demanded or purchased of a product in relation to its price change.
Mathematically:
Price Elasticity of Demand = % Change in Quantity Demand / % Change in Price.
From the above definitions stated about income and price elasticity of demand, the income in that year increased but the quantity of goods demanded decreased further by 5% from the predicted 7% (12 %)
Answer: Supplier dependence
Explanation:
Supplier dependence is the extent to which a firm (buyer) relies on the product of another firm (supplier) because of the importance of the supplier's products to it's own manufacturing process. The degree to which a buyer is dependent on a supplier's product is largely affected by the difficulty of accessing such products from another seller. In this case, 97% of this rare-earth materials are supplied by Chinese firms, the ban will greatly affect Hitachi manufacturing process.
Not at all...
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