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elena55 [62]
3 years ago
6

Suppose a local hardware store has explicit costs of $2 million per year and implicit costs of $44,000 per year. If the store ea

rned an economic profit of $50,000 last year, this means that the store's accounting profit equaled:________.a. 6000b. 94000c. 2.044 milliond. 2.05 million
Business
1 answer:
xeze [42]3 years ago
5 0

<u>Answer: </u>Option B$94000

<u>Explanation:</u>

The economic profit of the company can be found from the difference of the total revenue and the total cost that includes implicit and explicit cost. To find the total revenue earned the economic profit formula can be used.

Economic profit = Total revenue - (Explicit cost+ Implicit cost)

50000=Total revenue - (2,000,000+44,000)

Total Revenue = 2,044,000+50000

=2,094,000

Accounting profit is the actual profits earned by the firm which is calculated as difference between revenue and explicit cost. Implicit cost are not paid for they are the hidden costs.

Accounting profits = Total revenue - Explicit cost

=2,094,000 - 2,000,000

=$94,000

Thus the accounting profit of the local hardware store is $94,000.

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The multiplier applies to Group of answer choices investment, net exports, and government spending. increases in spending but no
olga2289 [7]

The multiplier applies to the investment, net exports and government spending.

<h3>What is a multiplier?</h3>

This refers to an economic factor that of increased, it can causes an increases in many other related economic variables.

Hence, in economics, its applies to the investment, net exports and government spending.

Therefore, the Option A is correct.

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3 0
2 years ago
The largest amount of money the government lays out is for the transfer program, _____. And its largest expenditure is for _____
serg [7]
The largest amount of money the government lays out is for the transfer program, Social Security. And its largest expenditure is for national defense. America is quite known for spending a lot of money on defending itself from any possible threat. 
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4 years ago
Read 2 more answers
1. Which of the following is NOT a general characteristic of a service? A. Production and consumption are simultaneous. B. The s
Snezhnost [94]

Answer:

B. The service can be transported

Explanation:

Service relates to providing an intangible form of work which is performed for others to yield a benefit or satisfy a want. An important aspect of a service being, it is intangible or something which cannot be touched or felt.

For example, service provided by a doctor or services provided by a waiter at a hotel. Services are consumed, the moment they are produced. For instance, services of a waiter arise when a customer enters the hotel and a want for the service is created.

Services cannot be resold as for instance the receiver performs the same service to another, the provider would change.

As services are intangible, they cannot be stored since they arise only when a want arises and are consumed immediately.

Thus, the correct option is B. The service can be transported.

5 0
3 years ago
This​ year, Druehl,​ Inc., will produce 60 comma 000 hot water heaters at its plant in​ Delaware, in order to meet expected glob
wolverine [178]

Answer:

The answer is: 2500 employees

Explanation:

Giving the following information we need to calculate the number of employees:

Total production= 60000

Hours per worker= 160 hours

labor productivity= 0,15

It takes to a single employee= 1/0,15= 6,67 hours to make a heater.

Each worker produces=160/6,67=24 heaters a year.

Now we can calculate the number of workers:

60000/24= 2500 employees

6 0
4 years ago
If inventory is being valued at cost and the price level is steadily rising, which of the three costing methods (FIFO, LIFO, wei
Nat2105 [25]

Answer:

LIFO                

Explanation:

It will be the one that give higher Cost of goods sold. We also know that:

Cost of goods sold = Opening Inventory + Inventory Purchases - Closing Inventory

So this means the lower the closing inventory the higher the cost of goods sold and in time of price increases it will be more appropriate to use LIFO method which will reduce the Closing Inventory and this will increase the cost of goods sold and thus decrease in profit. This reduced profit means that the tax expense will also be lower in value.

Similarly the second attractive option will be the Weighted Average and the least attractive option would be FIFO costing method.

5 0
3 years ago
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