Answer:
The accounting profit is $30,000.
Explanation:
The implicit cost of running the restaurant is the opportunity cost of giving up a salary of $40,000 per year working as a chef.
The revenue earned from the restaurant is $100,000.
The explicit costs is
= $50,000 + $20,000
= $70,000
An accountant will consider only the accounting cost or explicit cost in the calculation of profits.
Accounting profit
= Total revenue - Explicit costs
= $100,000 - $70,000
= $30,000
Answer:
An increase in the price of one substitute good causes a decrease in supply for the other.
Explanation:
I just took a test on this subject last week :)
Answer:
A. $50 in required reserves.
Explanation:
Required reserve is a reserve amount which is required by the regulatory authority to a bank to maintain as a percentage of total deposit. Sometimes the bank reserve extra amount above the requirement to deal with any abnormal transaction. This value is known as the excess reserves.
As per given data
Deposits = $500
Reserves = $200
Required Reserve ratio = 10 percent
Required reserve = Reserve required / Total Deposit
0.1 = Reserve required / $500
Reserve Required = $500 x 0.1
Reserve Required = $50
Excess reserve value = Actual Reserve - Required reserve = $200 - $50 = $150
The federal reserve bank may decide to INCREASE THE INTEREST RATE. Interest rate refers to the amount that is charged for making use of a particular loan. Increasing the interest rate is one of the monetary policy which the federal reserve bank use to control the money supply in an economy.