Answer:
a)
1. Explicit cost
2. Implicit Cost
3. Implicit Cost
4. Explicit cost
b)
Accounting Profit is $62000.
Economic Profit is -$3000. (a loss of $3000)
Explanation:
a)
Explicit costs are those costs incurred by a business that require an outlay of money as a result of operating a business.
Implicit costs, on the other hand, are the costs that do not require an outlay of money as a result of operating a business. They are instead the opportunity costs of operating a business or the benefits that are foregone.
1. The wages and utility bills are a result of operating a business and requires and outlay of money as their payment. They are <u>explicit costs.</u>
2. The rental income could have been earned if Larry rented the showroom he is using to operate his business from. The rent foregone is an opportunity cost and is an <u>implicit cost.</u>
3. The salary Larry could have earned is also something that Brian has to forego to operate his business and is an <u>implicit cost.</u>
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4. The cost of purchases paid to manufacturer requires outlay of money and is an <u>explicit cost.</u>
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b)
Accounting profit = Total Revenue - Total explicit cost
Economic profit = Total revenue - (Total Explicit Cost + Total Implicit Cost)
Accounting Profit = 793000 - 430000 - 301000 = $62000 profit
Economic profit = 793000 - (430000 + 301000 + 15000 + 50000) = -$3000 loss
Answer:
The decrease in production, is the right answer.
Explanation:
The decrease in production because if the output is more than planned aggregate expenditure then the equilibrium point will be at a lower point. Thus, in order to reach the equilibrium level, the production has to decrease. Moreover, if the output is lower than the planned aggregate expenditure then the production should be increased to reach the equilibrium point.
The loan lender is likely to ask you to write a check is: Payday advance company.
<h3>What is loan lender?</h3>
A loan lender is a person or a company that give out loan or lender out money to people.
A Payday advance loans company is a company that gives out loan to borrowers or lender in which the borrower are expected to payback the amount loan to them after receiving their paycheck or salary.
Payday advance loans company tend to given out fixed interest rate to their borrower.
Inconclusion the loan lender is likely to ask you to write a check is: Payday advance company.
Learn more about payday advance company here:brainly.com/question/25239160
Answer:
An effective marketing campaign will help a company achieve its marketing objectives and increase its profitability.
Explanation:
When a company wants to publicize its products and services and maintain a good relationship with its consumers, it develops marketing campaigns, which, when aligned with the values of the company and its target audience, will generate attention for the brand, generate engagement for the company. increase market positioning, increase brand value, attract customers, etc.
Therefore, to create an effective marketing campaign it is necessary to follow some essential steps.
1- Choose the essential objective of the marketing campaign and thus start to develop the idea for the company's promotional communication.
2- Choosing the ideal channel for the transmission of the message, it is necessary to know where your potential audience is most present, whether it is on social media, in the newspaper, on TV, etc.
3- Choose the ideal campaign concept.
4- Monitor the results of the marketing campaign after it is aired.
At $315,789 the house must be sold after taking into consideration the broker's commission.
<h3>What do you mean by broker’s commission?</h3>
A broker’s commission is a brokerage firm employee who is compensated for the number of trades they execute for clients.
These brokers typically earn a percentage of the assets traded by their clients, which means that the more a client trades, the more money they make.
In order to calculate the selling price, we have to start with 100% minus a 5% commission, which is 95% or .95.
Take $300,000 and divide this amount by .95.
This will give the amount or the price at which we can sell the house which is $315,789.
Thus, At $315,789 the house must be sold after taking into consideration the broker's commission.
To learn more about broker's commission refer:
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