Answer:
B. accounting profit = economic profit + implicit costs
Explanation:
Implicit cost are the cost that already incurred but is not necessary to report such as opportunity cost. Whereas explicit cost are those expenses which involve the financial transaction and it is being paid.
Accounting profit is calculated by deducting the explicit cost from the revenue as follow.
* Accounting Profit = Revenue - Explicit cost
Economic profit is calculated by deducting both explicit and implicit costs from revenue.
Economic Profit = Revenue - Explicit costs - Implicit cost
So, using Accounting profit formula we conclude that
Economic Profit = (Revenue - Explicit costs) - Implicit cost
Economic Profit = *Accounting profit - Implicit costs
Accounting Profit = Economic profit + implicit cost
You sure invest 150.00 every two weeks out of your pay check
Answer:
The correct answer is option a.
Explanation:
The equilibrium interest rate is determined by the interaction of aggregate demand for loanable funds and aggregate supply of loanable funds. In other words, at the level of equilibrium interest rate, the aggregate demand for loanable funds is equal to aggregate supply of loanable funds. Any change in these two variable causes the equilibrium interest rate to change.
Answer: Option (a) is correct.
Explanation:
Correct Option: Lower than his opportunity cost of that good.
Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.
If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.
In our case, if people obtained a good at a price that is lower than his opportunity cost of that good then he will be benefited from the trade.
Julie’s mental age is 8 years old. Mental age is the age of
a person based on his or her intelligence. Mental age is computed based on the result
of the intelligence test and the psychologist assessment to the person.
