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3 years ago

Which of the following terms is correct?

Business

1 answer:

slega [8]3 years ago

3 0

Answer:

a. Economic profit takes into account all costs involved in producing a product.

Explanation:

Numeral A is the only correct option in the question.

Economic profit takes into account all costs: explicit costs and implicit costs. Explicit costs are the monetary costs that we incurr when we run a business, such as wages, rent, and utilities.

Implicit costs are the opportunity costs that we incurr, in other words, what we gave up to run the business. For example, if you had a job, and quit to set up the business, your implic cost is the salary that you used to earn.

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Price taking behavior for a firm means that:

erma4kov [3.2K]

Answer:

d. the firm has no individual effect on the market price.

Explanation:

Price taker -

It refers to the company or an individual who need to get the prevailing price of the market and have lesser market share , is referred to as price taker .

The price taker does not have the capability to alter the market price , because it does not have enough power to do the same .

A price taker can be any one in the economy , and can freely take entry and exit .

Hence, from the given information of the question,

The correct option is d.

5 0

4 years ago

Jerry owns a manufacturing business. He keeps a large amount of inventory and cash in his warehouse. He plans to have a good int

vesna_86 [32]

I believe the answer is A.
economic risk.

7 0

3 years ago

Read 2 more answers

Kari is a limited partner in Lizard Partnership. This year, Kari's share of partnership ordinary income is $20,000, and she rece

kogti [31]

Answer: a. $3520

b. $26480

c. $40000

Explanation:

a. Calculate the tax cost of Kari's partnership earnings this year Tax cost

Ordinary Income = $20000

Less: 199A deduction = 20% × $20000 = $4000

Ordinary Income share = $16000

The tax cost of Kari's partnership earnings this year Tax cost will be:

= 22% × $16000

= 0.22 × $16000

= $3520

b. Compute Kari's after-tax cash flow from her partnership activity this year After-tax cash flow

This will be:

= Cash distribution - Tax cost

= $30000 - $3520

= $26480

c. Compute Kari's tax basis in her partnership interest at the ending of the year. Assume no change in her share of partnership during the year.

Basis at start of year = $50000

Add: Ordinary income = $20000

Adjusted basis = $50000 + $20000 = $70000

Less: Cash distribution = $30000

End of year basis = $40000

5 0

3 years ago

Stock market prices plunged tremendously in 1929, contributing to the Great Depression as the AD curve shifted greatly to the le

Talja [164]

Answer:

b. expectations that stock prices would fall further could shift the AD curve further to the left.

Explanation:

The AS/ AD model stated the aggregate supply and aggregate demand model which stated level of prices and its output by maintaining the relation between the supply and demand

As in the given situation, it is mentioned that the aggregate supply of short run decline and that brings deflation and it moves the economy back to the output i.e potential. It impacts the expectation of stock prices would result in declines and further it shifted the AD curve to the left side

Hence, the correct option is B.

6 0

3 years ago

On December 31 of the current year, a building owned by Pine Corp. was totally destroyed by fire. The building had fire insuranc

drek231 [11]

Answer:

Pine Corp. will base the determination of its loss on involuntary conversion on fair market value of $550,000.

Explanation:

Involuntary conversion is the forced payment for property that was damaged or stolen.

Capital gains will when compensation received is greater than conversion market value.

4 0

4 years ago