Answer:
Given:
Implicit Cost = $65,000
Total revenue = $150,000
Explicit cost = $85,000
Here, we'll compute the economic profit for the first year as :
<em>Economic profit = Total revenue - (Explicit cost + Implicit Cost)</em>
<em>Economic profit = </em>$150,000 - ($85,000 + $65,000)
<em>Economic profit = $0 </em>
<em></em>
<em>∴ </em><u><em>Tom’s economic profit for his first year in business will be $0</em></u>
<u><em>The correct option is (a).</em></u>
<u>Solution and Explanation:</u>
GDP is calculated as follows:
Y = C + G + I + NX
where
C = Consumption
G = Government Expenditure
I = Investment
NX = Net Exports
It is mentioned that in 2015, GDP was 50 million and in 2016, it was 48 million without any change in the factors except NX. It means the net exports that is the difference between export and the import of the country has changed and it has fallen by 2 million.
Let us calculate net profit on each unit; after the changes, we have that the company sells 1300 units and eah unit has a profit margin of 175-100=75$.We also have that the fixed costs are in total 96000-20000=76000$. Consider the profit function P(x) that depends on the number x of units sold. P(x)=75*x-76000. Substituting x=1300, we have that P(x)= 97500-76000=21.500$. This is the Net operating Income after the changes.
One potential risk of social networking for businesses is embarrassment due to employees making innapropriate posts. Social networking allows poeple to connect with one another through an online opportunity. Due to the nature of what they are able to view and post about, they should make sure everything stays relevant to work and how they would handle themselves in a work and networking setting.
