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GrogVix [38]
3 years ago
11

Economic profits are Multiple Choice always larger than accounting profits. the sum of accounting profits and implicit costs. eq

ual to the difference between total revenues and implicit costs. equal to the difference between accounting profits and implicit costs.
Business
1 answer:
AleksandrR [38]3 years ago
6 0

Answer:

The answer is: Economic profits is equal to the difference between accounting profits and implicit costs.

Explanation:

Unlike accounting profits which only take explicit expenses into account, Economic profits take both explicit and implicit costs into account to come up with the net worth a firm/a project is generating.

These implicit costs are opportunity costs which by operating a firm or by taking a project, an economic benefit has to be sacrificed for the firm or the project to be operated/ carried out.

So, to come up with economic profit from accounting profit, we have to further subtract implicit cost from accounting profit or:

Economic profit = Accounting profit - Implicit costs.

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Sean McGowan renewed his membership at Bargain Barn. Shortly after renewing the card, Sean started receiving calls from collecti
34kurt

Answer:

Identity theft

Explanation:

Identity theft is when a person steals another person's information like name and credit card information and uses it to commit a crime. For example, a person can use someone else's name and social security number to get a loan. According to this, Sean experienced identity theft because someone stole his information and got a credit card under his name.

8 0
3 years ago
Lin Corporation has a single product whose selling price is $140 per unit and whose variable expense is $70 per unit. The compan
ivanzaharov [21]

Answer:

The sales unit to achieve a target profit of $6,250 is 545 units

The sales units to achieve to achieve a target profit of $9,400 is 590 units

Explanation:

The quantity at target profit=fixed cost+target profit/contribution per unit

fixed expense=$31,900

target profit $6,250

contribution per unit=$140-$70

                                  =$70

unit sales at a target profit of $6,250=($31,900+$6,250)/$70

                                                             =545  sales units

fixed expenses $31900

target profit of $9400

contribution per unit is $70

unit sales at a target profit of $9,400=($31900+$9400)/$70

                                                            =590 sales unit

8 0
3 years ago
with this type of externality, in the absence of government intervention, the market equilibrium quantity produced will be than
ikadub [295]

The type of externality where market equilibrium quantity produced will be more than socially optimal quantity in absence of governemtn intervention is Negative externality.

Let understand that whenever a production of good or service negatively affect the unrelated third party who is not directly involved in a market transaction, it is said that negative externality exists in the scenario.

A very good example of commonly cited Negative Externalities are air pollution and noise pollution which was caused during production an affects unrelated third party.

If there is presence of government intervention in the production, then, the production of goods or service will be halted.

Therefore, in conclusion, this type of externality is called the Negative Externality.

Read more about Negative Externality here

<em>brainly.com/question/13901028</em>

7 0
2 years ago
An additional worker is hired for an hour at a wage w = $12. the worker produces 4 hamburgers per hour with a price of $3 per ha
Lelechka [254]

The real wage paid to the worker is 4 hamburgers per hour.

<h3>What is Wage?</h3>
  • A wage is the sum of money that an employer pays an employee for work that was completed within a certain time frame.
  • The minimum wage, prevailing rate, annual bonuses, and remunerative rewards like prizes and tip payments are a few examples of wage payments.
  • It is broken down into two parts: a direct cost made up mostly of gross pay plus various benefits; and an indirect cost made up primarily of traditional and legal employer contributions and other fees.
  • Regular and supplemental pay can be divided into two groups.
  • The number of hours worked multiplied by the employee's hourly wage can be used to determine gross wages for hourly workers.

Learn more about wage here:

brainly.com/question/10062041

#SPJ4

3 0
1 year ago
Standard, Inc. reported EBIT of $35 million for last year. Depreciation expense totaled $20 million and capital expenditures cam
aleksandr82 [10.1K]

Answer:

$710.84 million

Explanation:

Net income = $35 million

Depreciation = $20 million

Capital expenditures = $7 million

Tax rate = 21%

D/E ratio = 0.4

Growth rate = 6%

Equity beta = 1.25

So, firm's asset beta = Equity beta/(1 + D/E*(1-T))

= 1.25/(1 + 0.4*(1-0.21))

= 0.94985

So, Free Cash Flow to the Firm= NI + Depreciation - Capital expenditures

= 35 + 20 - 7

= $48 million

Risk free rate Rf = 5%

Market risk premium = 7.5%

So, firm cost of capital using CAPM is Rf + Beta*(MRP)

Kc = 5 + 0.94985*7.5

Kc = 12.1239

So, Firms value using constant dividend growth model:

FV = FCF*(1+g)/(Kc-g)

FV = 48*1.06 / 0.121239-0.06

FV = 50.88 / 0.061239

FV = 830.8430901876255

FV = $830.84 million

Debt = $120 million

Market Value of equity = FV - Debt

Market Value of equity = $830.84 million - $120 million

Market Value of equity = $710.84 million

6 0
3 years ago
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