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lora16 [44]
3 years ago
10

Suppose an assistant professor of economics is earning a salary of $75,000 per year. One day she quits her job, sells $100,000 w

orth of bonds that had been earning 5 percent per year, and uses the funds to open a bookstore. At the end of the year, she shows an accounting profit of $90,000 on her income tax return. What is her economic profit?
Business
1 answer:
34kurt3 years ago
8 0

Answer:

Economic profit  $10,000

Explanation:

Income earned as an assistant professor = Salary + Interest on bonds = 75000 + 5% on 100,000 = 75000 + 5000

Income earned as an assistant professor = $80,000

Income from the bookstrore = $90,000

In calculating economic profit, opportunity costs are deducted from revenues earned.

Economic profit = $90,000 - $80,000 = $10,000

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C. Automation

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4 0
3 years ago
What type of tort action requires proof of fault?
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Answer:

C Negligence

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3 years ago
The expected return on Natter Corporation's stock is 14%. The stock's dividend is expected to grow at a constant rate of 8%, and
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Answer:

d. The stock price is expected to be $54 a share one year from now.

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Answer:

Explanation:

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