Answer:
-$475,000
Explanation:
Total revenue = Baskets of peaches × Price
= 100,000 × $3
= $300,000
Explicit cost:
= Rent equipment + wages
= $100,000 + $100,000
= $200,000
Implicit cost:
= Land × Interest + salesman earned
= $1,000,000 × 0.55 + $25,000
= $575,000
Total cost = Explicit cost: + Implicit cost
= $200,000 + $575,000
= $775,000
Economic profit = Total revenue - Total cost
= $300,000 - $775,000
= -$475,000
Answer:
D) Permit limited private ventures
Explanation:
An absolute command economy will not permit limited private ventures since it is practicing a socialist or communist political and economic system. In a socialist system all means of production is controlled by the state and liberty to private enterprise is restricted.
The statement, 'lower interest rates are part of tight money policy' is false.
<u>Explanation:</u>
Tight monetary policy which is also known as contractionary monetary policy is undertaken by Federal Reserve to reduce the economic growth that is overheated and to curb fast increasing inflation rate. Here the policy increases the interest rates thereby reducing the borrowing in the economy.
So, the true statement would be 'lowering the interest rates stimulates the borrowing in the economy and it is a part of the expansionary or loose monetary policy'.
Answer:
$120,000
Explanation:
Given:
Shares owned by Fritz = 
of number of the shares of the other three shareholders i.e 
of all the shares
Shares owned by Luis = 
of number of the shares of the other three shareholders i.e 
of all the shares
Shares owned by Alfred = 
of number of the shares of the other three shareholders i.e 
of all the shares
Therefore,
Shares owned by them together = 
= 
of all shares,
This means that Werner owns = 1 − of all shares,
=
of all shares
i.e
= × $3,600,000
= $120,000
