1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Elden [556K]
3 years ago
12

A farmer has cash costs of S1.50/bu for his corn. The opportunity cost of his labor is S0.30/bu and the opportunity cost of his

land (which he owns) is $0.40/bu. If he sells his corn for $2.50/bu, then his economic profits are:_______ A) $2.50/bu B) S1.00/bu C) S0.30/bu D) S0.70/bu E) can't tell based on the information given
Business
1 answer:
Ghella [55]3 years ago
4 0

Answer:

C. $0.30/bu

Explanation:

Given that

Cash cost = $1.50/bu

Opportunity cost of labour = $0.30/bu

Opportunity cost of Land = $0.40/bu

Sales from corn = $2.50/bu

Recall that economic profits = Total income - Total expenses - opportunities cost

Therefore

Economic profits = 2.50 - 1.50 - (0.30 + 0.40)

= 2.50 - 1.50 - 0.70

= 0.30

Therefore, economic profits = $0.30/bu

You might be interested in
Inacio Corporation uses the weighted-average method in its process costing system. Data concerning the first processing departme
lakkis [162]

Answer:

Option D , $15.12

Explanation:

Weighted-average method :

Materials

Units transferred to the next department = 10,300

Ending work in process:

Materials: 1,200 units × 90%  = 1080

Equivalent units of production  =10,300+1080= 11,380

Materials

Cost of beginning work in process inventory= $2,700

Costs added during the period  = $173,900

Total cost (a)  =$173,900+$2,700 = $176,600

Equivalent units of production (b)= 11,380

Cost per equivalent unit (a) ÷ (b) = $15.51

The cost per equivalent unit for materials for the month in the first processing department is closest to $15.51

3 0
3 years ago
Cups of coffee and donuts are complementary. Both have inelastic demand. A hurricane destroys half of the coffee bean crop. Use
Nadya [2.5K]

Explanation:

<u>a.what happens to the price of coffee beans?</u>

In this case, when there is a phenomenon like a hurricane that destroys half the harvest, the supply of coffee beans consequently decreases, the quantity decreases and the price increases.

<u>b. What happens to the price of a cup of coffee? What happens to the total expenditure on cups of coffee?</u>

When the price of the main input for the production of coffee cups increases and the supply decreases, it appears as an increase in the price of a cup of coffee and a decrease in the amount of coffee cups available on the market.

As they have an inelastic demand, coffee cups with a higher price correspond to an increase in total coffee expenses.

<u>c.What happens to the price of a cup of donuts? What happens to the total expendiure on donuts?</u>

In this case, donuts and coffee are complementary, so when there is an increase in the price of coffee and a decrease in the quantity demanded, there is also a decrease in the demand for donuts. So if the demand for donuts decreases, their price also decreases and the total expenditure on donuts decreases.

8 0
4 years ago
A(n) _____ is in control of an agency relationship because he or she defines the tasks and objectives of the relationship./pract
NARA [144]

Answer:

Principal

Explanation:

The principal has the right to abolish the relation or set the objectives of the agent and allocation of task and authority delagated to the agent. This control is given to principal by law to protect his interests.

8 0
3 years ago
All of the following options are good tips for borrowing money EXCEPT...
Jlenok [28]
I would say B. Quick cash loans. Interest rates are very high & not a good idea in borrowing money. They are designed for people who have poor credit ratings & have no other means to borrow money.
5 0
3 years ago
Diane is a CFO at we do what we want, Inc. She was just instructed by her boss, the CEO, to accelerate the recording of revenue
Novosadov [1.4K]

Answer: Option "D" is the correct answer for the following situation.

Explanation:

Diane must be careful that she operates within the organization through the command chain to prevent a sub-coordinating judgment.

The concept of a command structure is an international hierarchy of power that defines who is in control of whom and who should be asked for permission. The indication of a command structure is when a staff member reports to a boss reporting to a senior executive reporting to the vice president reporting to the CEO.

8 0
3 years ago
Other questions:
  • Which of these statements about cycle inventory is​ BEST? A. Cycle inventory exists to avoid customer service problems. B. Cycle
    9·1 answer
  • Look at the picture, which one is the correct answer?
    8·1 answer
  • Bearcat Construction begins operations in March and has the following transactions.
    14·1 answer
  • Suppose that a worker in Radioland can produce either 4 radios or 1 television per year, and a worker in Teeveeland can produce
    15·1 answer
  • What is NOT affected by decisions of the federal Open Market Committee?
    7·2 answers
  • Once Domino's decided to offer salads, it partnered with "Ready pac foods" to offer each Domino’s Pizza location prepackaged sal
    15·1 answer
  • Selected information taken from the accounting records of Vigor Company follows:
    12·1 answer
  • Where should a worker go for equipment to help put out a small fire?
    7·2 answers
  • An entrepreneur might use _____ in the very early stages of a start-up.
    7·1 answer
  • True or false: the interval measure indicates how long a start-up company can operate until it needs more financing.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!