Answer:
ii. Her accounting profit was $150,000
iii. Her economic profit was $50,000
Explanation:
The computation is shown below:
For accounting profit, it is
= Total revenues - total expenses i.e explicit cost
= $250,000 - $100,000
= $150,000
And, for economic profit
= Total revenues - total cost i.e explicit and implicit cost
= $250,000 - $100,000 - $100,000
= $50,000
Hence, the second and third options are correct
Answer:
c. GDP fails to account for the quality of the environment.
Explanation:
Gross domestic product is defined as the sum total of all goods and services produced in a country within a specific time.
It measures the level of wealth in the economy. However it is not a true reflection of personal well being of the citizens of a country because it does not consider the quality of the environment in which people live.
GDP only measures.activities in the market place but does not evaluate other factors like leisure, quality of the environment, health levels, and education.
Answer:
The economic model of corporate social responsibility (CSR)
Explanation:
The <u>economic model of corporate social responsibility</u> directs managers to maximize profit and shareholder wealth and recognizes only legal limitations on the pursuit of profit.
The extra $2 that you saved on the $4.50 you were willing to pay for it represents consumer surplus. Consumer surplus is the difference between the total amount that a consumer is willing to pay for a good or service versus what they actually pay for the good or service. The $2 represents what the consumer was willing to pay for the milk.
