Answer and Explanation:
The computation of the economic profit is shown below:
Economic profit = Revenue from flower shop - costs of a flower shop - salary of the job
= $100,000 - ($30,000 - $10,000) - $70,000
= -$10,000
As there is an economic loss so you should not open the flower store
Therefore the same would be considered
According to the menu cost the firms would be slow to changing prices because .the cost of changing the price might exceed the additional profit the price change would generate.
<h3>What is the menu cost theory?</h3>
This is the theory in the field of economics that helps to ensure the reflection of the effect of the change in price to an establishment.
According to this theory, the the cost of changing the price might exceed the additional profit the price change would generate.
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The Federal Deposit Insurance Corporation, or FDIC, protects the money people deposit into their bank accounts. When a bank fails, or when a financial crisis induces large numbers of people to withdraw their money, account holders may lose the money they deposited. The FDIC was created to not only establish a reserve of cash against deposits but give people confidence in the banking industry.
Answer:
$80,000
Explanation:
Since Worthington Corp. assumed the the $20,000 mortgage which the building was subject to, the Worthington Corp.'s basis in the building is the adjusted basis of the building.
Therefore, Worthington Corp.'s basis in the building is <u>$80,000</u> which is the adjusted basis of the building.