The correct option is B
<u>Explanation:</u>
<u>The accounting profit can be calculated with the help of following given formula
</u>
Accounting profit = revenue minus the explicit costs =100000 minus 25000
Thus, after calculations, the accounting profit is equal to $75000
<u>To calculate the economic profit, the following formula is to be used.
</u>
The economic profit = accounting profit minus the implicit costs
=75000 minus 30000
($30000 is his salary as the server which is opportunity cost) =$45000
Thus, the Option B is the correct answer.
Answer:
Option (d) 9.59%
Explanation:
Data provided in the question:
Annual dividends paid by the Brown jug
$0.61, $0.64, $0.71, $0.82, and $0.88 per share over the past 5 years
Now,
Present value = $0.61
Future value = $0.88
Time = 4 years [as there is no interest for the year 1]
Now,
Future value = Present value × (1 + r )ⁿ
here,
r is the geometric average dividend growth rate
$0.88 = $0.61 × (1 + r )⁴
or
(1 + r )⁵ = 1.4426
or
1 + r = 1.0959
or
r = 0.0959
or
r = 0.0959 × 100% = 9.59%
Hence,
Option (d) 9.59%
Answer:
The answer options for this question are as follows
A) moral hazard
B) adverse selection
C) costly state verification
D) agency
The correct answer is A) moral hazard
Explanation:
Moral hazard corresponds to opportunistic behavior where one of the parties seeks their own benefit at the expense of the other being unable to observe or be informed of their behavior.
Moral hazard appears in markets with asymmetric information. One of the parties has private information about their conduct while others cannot obtain this information.
Given this asymmetry, individuals take greater risks, make less efforts or take advantage of certain circumstances because they know that the cost of their actions will fall on other people.
<span>Human Capital because they had skills and they were individuals. LOLZ If I spell wrong. :D</span>