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SashulF [63]
3 years ago
10

Why might a profitable motel shut down in the long run if the land on which it is located becomes extremely valuable due to surr

ounding economic development? What kinds of costs are involved in making a decision to shut down?
Business
1 answer:
myrzilka [38]3 years ago
8 0

Answer:

The opportunity costs may be too high, and the motel may not yield high enough returns to offset them.

Opportunity costs is the money you do not earn for choosing one alternative investment or action over another. In this case, the cost of the land is probably very high and the motel (or any other business) might not be making as much money from their regular operations as they could from selling the land and using that money for another investment.

A business will shut down when their economic costs exceed their revenue.

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Ancient Industries just paid a dividend of $1.03 a share. The company announced today that it expects to pay $.90 a share next y
LenKa [72]

Answer:

$14.48

Explanation:

P0 = $.90 / 1.16 + $18.44 / 1.16^2 = $14.48

One share of this stock worth today if the required rate of return is 16 percent is $14.48

4 0
3 years ago
A pure strategy involves​ ____________. A. choosing one particular action for a situation. B. choosing ethical actions over domi
aliina [53]

Answer: Choosing one particular action for a situation

randomly

Explanation: A pure strategy is used to define the actions of the user in the particular situation. In such case, the user choose one alternatively from two or more and do not mix them.

Whereas, in a mixed strategy the user chooses its action from a number of alternatives in a random manner and not on the basis of any predetermined criteria as in the case of pure strategy.

5 0
3 years ago
Hermano and Rosetta are a retired couple who receive $10,000 in Social Security benefits during the current year. They also rece
Zolol [24]

Answer:

$41,000

Explanation:

Gross income an individual or individuals is the total amount of income that he or they receive from his or their employer(s) before taxes are deducted and other allowable deductions are made.

The gross income is an aggregation of all income from all sources whether the income is received in cash or in kind. That is, part of the income to consider when calculating gross income are income received in kind like property or services received.

From the question, the gross income of Hermano and Rosetta can be calculated by adding all the income they received from all sources before tax are deducted as follows:

Gross Income = Social Security benefits + Interest on savings account + Taxable pension payment

Gross Income = $10,000 + $3,000 + $28,000

                        = $41,000.

Therefore, the gross income of Hermano and Rosetta is $41,000.

5 0
3 years ago
Why are the premiums for a PPO health insurance plan generally more expensive than those for an HMO Health Insurance Plan?
kkurt [141]

Answer:

A. PPO insurance plans offer a wider choice of primary care doctors and specialists.

Explanation:

7 0
3 years ago
Read 2 more answers
Now we have country E, an emerging country. Country E starts off with a GDP per capita of $4,000, and is experiencing a GDP per
swat32

Answer:

6 years

Explanation:

The rule of 72 would be used to determine the number of years it would take GDP per capita to double

Rule of 72 = 72 / GDP per capita growth rate

72 / 12 = 6 years

I hope my answer helps you

5 0
3 years ago
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