Answer:
No, their economic cost of enrolling in the business program is not the same for both,
Explanation:
The explicit costs of going back to college are the same for Walter and Jesse, e.g. they might be $20,000 per year, or even $30,000 doesn't matter for this analysis. But Walter is currently working as a teacher and that means taht if he decides to go to college, his implicit costs will include the forgone salary as a teacher which is $50,000 per year. Implicit costs are opportunity costs, i.e. additional costs or benefits lost from choosing one activity or investment instead of another alternative.
Since Jesse is not working, whether she goes back to college or not will not affect her income, it will still be $0, but if Walter goes back to college he will lose his salary.
Answer:
a.Maria can offset the $80,000 loss against the $150,000 of income from the retail store.
Explanation:
Maria has been in restaurant firm, for more than 5 years until the current year. So, she is an active participant. Hence, her active loss in her active activity - restaurant loss 80000 can be offset against $150,000 income from the retail store.
Explanation:
the optimum number of the worker is hired at marginal revenue product equal to the wage
wage=$900,
the firm should hire 5 workers
wage=1300
the firm should higher 2 workers
Answer:
P(x)=-30x^2+9000x-567000
Explanation:
First, we need to remember the parts of a Profit function. A profit a business makes equals revenue (R(x)) minus its costs (C(x)). So
There are two parts
1. Revenue: which is equal to the number of units sold times the price:
where x is the price you charge and Q(x) is the number of shirts that can be sold. Then
2. Cost. The cost function is directly given by the question
Putting this together we have
Answer:
a) savings equals investment spending.
Explanation:
Savings is the part of the income that is not used and investment is money that is spent on capital. Savings-investment spending identity is a concept that says that the amount saved in an economy equals the amount invested. This because investments depend on the amount of savings available.
