Answer:
The answers are the first three statements.
Explanation:
The quality of goods available to consumers
.
The value of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government.
The loss of enjoyment people incur when scenic land is converted to commercial use.
Answer:
$50
Explanation:
Fortune Company
Paid-in capital,Treasury stock:
May1 $ 0
July 1: $2/share *50 shares 100
August 1:$1/share*50 shares (50)
Balance August 2 $ 50
Therefore the balance in the Paid-in Capital, Treasury Stock account on August 2 will be $50
Answer:
False
Explanation:
It does not necessarily means that when a firm gets a normal rate of return, it earns economic profit also, as it depends on various factors:
- In the short run every firm aims to recover its variable cost, and in it's long term duration to recover its total cost, but it does not necessarily conclude that the return will attain the level of earning economic profit.
- Normal rate of return is based on competitive market, as an average rate of return on market, but if the investment is made from borrowed funds, it might be that the company is not able to pay the cost of borrowing in that case it is even after attaining the normal rate of return it will not earn economic profit.
Answer:
The answer is b. Up to $4 million.
Explanation:
It is critical to recognize that $3 million already spent on developing the product is the sunk cost, which is irrelevant cost that should not be included in the budget further spend for the new product.
As the new product is expected to generate a revenues of $4 million, the further cost should be spent on the new product development should not be exceeded the $4 million.
Thus, the answer is b. Up to $4 million is the correct choice.