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pickupchik [31]
3 years ago
6

Suppose an assistant professor of economics is earning a salary of $75,000 per year. One day she quits her job, sells $100,000 w

orth of bonds that had been earning 5 percent per year, and uses the funds to open a bookstore. At the end of the year, she shows an accounting profit of $90,000 on her income tax return. What is her economic profit?
Business
1 answer:
Akimi4 [234]3 years ago
4 0

Answer:

Economic profit  $10,000

Explanation:

Income earned as an assistant professor = Salary + Interest on bonds = 75000 + 5% on 100,000 = 75000 + 5000

Income earned as an assistant professor = $80,000

Income from the bookstrore = $90,000

In calculating economic profit, opportunity costs are deducted from revenues earned.

Economic profit = $90,000 - $80,000 = $10,000

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The number of customers who enter a bank is thought to be Poisson distributed with a mean equal to 10 per hour. What are the cha
VLD [36.1K]

Answer:

The probability that 2 or 3 customers will arrive in a 15-minute period is 0.4703

Explanation:

Firstly, we have to determine the segment unit, since the mean is 10 per hour, the segment unit is 1 hour.

The mean(m) = 10

since the period is 15 minutes = 0.25 hour, t= 0.25 hour / 1 hour. Therefore mt= 2*10 = 2.5

The poisson distribution formula P(x) = \frac{(mt)^{x}e^{-mt}  }{x!}

Therefore the probability that 2 or 3 customers will arrive in a 15-minute period

P(x=2) or P(x=3) = P(x=2) + P(x=3) = \frac{(2.5)^{2}e^{-2.5}  }{2!}+\frac{(2.5)^{3}e^{-2.5}  }{3!} = 0.2565 + 0.2138 = 0.4703

Therefore P(x=2) or P(x=3) = 0.4703

The probability that 2 or 3 customers will arrive in a 15-minute period is 0.4703

3 0
2 years ago
Read 2 more answers
he annual interest on a $9000 investment exceeds the interest earned on a $1000 investment by $534. The $9000 is invested at a 0
Nadya [2.5K]

Answer:

The interest on investment of $9000 and $1000 is 5.41 % and 4.81% respectively.

Explanation:

Let i be the interest rate on $ 9000 investment, then

9000i + 1000(i -0.006) = $ 535

10,000i = 541

i = 5.41 % on investment of $ 9000.

than on  $1000 investment interest = 5.41-0.6 = 4.81 %

4 0
2 years ago
Read 2 more answers
Wanda is in charge of acquisitions for her company. Realizing that water is important to company operations, Wanda buys a plant
iren [92.7K]

Answer:

This is a very unlikely situation, since the plant must be really large and the river probably didn't carry a lot of water in the first place. But even if this was possible, it would be illegal for a company to use 100% of the natural resources available. No law or regulation (municipal, state or federal) would allow such thing to happen and assuming it got to court, the court would rule against the company.

Since you need an environmental impact report before you start building a factory, then it would be unlikely that the factory or plant was legally authorized to operate in the first place. The only option is that they built a dam and that is highly regulated.

8 0
3 years ago
An assistant manager at a restaurant gets a $100 a month raise. He figures that with his new monthly salary he cannot buy as man
Inessa05 [86]

Answer:

b. His real salary has fallen and his nominal salary has risen.

Explanation:

If the assistant manager's salary rose but he can't afford the goods he used to buy last year , it means that his nominal salary rose.

Nominal salary is the sum of real salary and inflation rate.

Real salary is nominal salary less inflation rate.

Real salary measures the purchasing power of salary.

If with the salary increase, the assistant manager could buy more goods compared to last year, both nominal and real salary increased.

I hope my answer helps you.

4 0
3 years ago
Make a list of things that should be considered while managing a factory or an industry
riadik2000 [5.3K]
Quality Control is Essential

Get Prototypes Sorted First

Form Positive Working Relationships

Sorting the Premises

Bankrolling the Business

Understand the Legalities
6 0
2 years ago
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