Answer: Option(a) is correct.
Explanation:
Total Revenue = Units sold × price per unit sold
= 11,000 × $75
= $825,000
Explicit cost = Units sold × cost per unit
= 11,000 × $55
= $605,000
Implicit cost = Earning at state university + Entrepreneurial talent + cash bonds at 10% interest
= $45000 + $5,000 + ($100,000 × 10%)
= $60,000
Economic profits = Total Revenue - (Explicit cost + Implicit cost)
= $825,000 - ($605,000 + $60,000)
= $825,000 - $665,000
= $160,000
The answer is B, Primary target market.
Answer: purchase of 50
Explanation:
Open market operations is used when the central bank either buys or sells government securities. This is done in order to contract or expand the availability of money.
Based on the scenario in the question, if the Central Bank of Macroland wishes to increase the money supply to 3,000, then it should conduct an open-market buy 50 government bonds.
Answer: Positive Externality
Explanation:
Externality is a side effect of an activity that is operated by a particular industry or people which affects the other parties who are not involved in the activity and this cost is not included in the cost of goods and services.
There are two types of externalities ; Positive and Negative externality.
Negative externality refers to the externality that affects the other parties in a negative way. For example, smoking.
Positive externality refers to the externality that affects the other parties in a positive way. For example, Education.
Therefore, if some part of the benefit of an activity is received by the third party who is not involved in this activity, it is called Positive Externality.
