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Angelina_Jolie [31]

3 years ago

15

Suppose annual inflation rates in the u.s. and mexico are expected to be 6% and 80%, respectively, over the next several years.

if the current spot rate for the mexican peso is $.005, then the best estimate of the peso's spot value in 3 years is

1 answer:

jeka943 years ago

7 0

<span>The answer is $.00102</span>

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3 years ago

Madeline quits her job, at which she was earning $20,000 per year. She then takes $50,000 out of savings, on which she was earni

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Answer:

A. Madeline's accounting cost is $75,000

B. Madeline's economic cost is $100,000

C. Madeline's accounting profit is $75,000

D. Madeline's economic profit is is $50,000

Explanation:

A. To calculate Madeline's accounting cost we would have to make the following calculation:

Madeline's accounting cost=cost of supplies+rent+labour costs

Madeline's accounting cost=$50,000+$10,000+$15,000

Madeline's accounting cost=$75,000

B. To calculate Madeline's economic cost we would have to make the following calculation:

Madeline's economic cost=explicit cost+implicit cost

=$75,000+opportunity cost

=$75,000+0.10*$50,000+earning job

=$75,000+$5,000+$20,000

=$100,000

C. To calculate Madeline's accounting profit we would have to make the following calculation:

Madeline's accounting profit=revenue-accounting cost

=$150,000-$75,000

=$75,000

D. To calculate Madeline's economic profit we would have to make the following calculation:

Madeline's economic profit=revenue-economic profits

=$150,000-$100,000

=$50,000

6 0

4 years ago