Answer: D. Since Hiro’s economic profit is negative, he would be better off if he didn’t operate the consulting business and taught economics instead.
Explanation:
Economic Cost is calculated by taking into account all costs, both Implicit and Explicit. Implicit Costs are also known as Opportunity costs and are referred to as the income you could be earning if you were doing the alternative.
Hiro's Economic Cost can hence be calculated by,
Economic Cost = Implicit costs + Explicit Costs
= (50,000 + 100) + 57,000
= <em>$107,000</em>
Subtracting that from his Revenue per year gives,
= 100,000 - 107,000
= -<em>$7,000</em>
Hiro is experiencing an Economic Loss by operating his business and would be better off Teaching Economics at the small local college.
<span>This defense mechanism is called "Reaction formation", which means acting the opposite by doer what he/she truly possessed.</span>
Answer: There would be no effect
Explanation:
A company only report reasonably possible in the footnotes and Probable and estimated in the financial statements
Thanks for the question!
True. Being the leader means you have to take responsibility of everything the group does, bad or good.
Hope this helps!
Answer: a. is wrong. Because Verania has a comparative advantage in washing dishes, she should wash dishes, and Josimar should vacuum.
Explanation:
Having absolute advantage in both things does not mean that Verania has a Comparative advantage in both as well.
They should find out which activity they both have a comparative advantage in and focus on that. The activity that costs the least opportunity cost is the one they have a comparative advantage in.
Verania
Opportunity cost of vacuuming = 2 / 1 = 2 hours of washing dishes
Opportunity cost of washing = 1/2 = 0.5 hours of vacuuming
Josimar
Opportunity cost of vacuuming = 3/2 = 1.5 hours of washing dishes
Opportunity cost of washing = 2/3 = 0.66 hours of vacuuming
Verania has a comparative advantage in washing dishes while Josimar has a comparative advantage in vacuuming.
