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4 years ago

Refer to Scenario 13-3. Ziva's economic profit from farming equals a. −$80. b. $170. c. −$130. d. $130.

Business

1 answer:

mafiozo [28]4 years ago

8 0

Answer:

a. −$80.

Explanation:

Ziva's economic profit =Revenue- (explicit costs + implicit costs)

Revenue= $300

Explicit costs=$130

Implicit cost=$25*10 =$250

Ziva's Economic Profit= $300-($130+$250)

=$300-$380

Ziva's Economic Profit=-$80.

Explicit cost is the same as accounting costs. This include cost of seeds(i.e $130), wages paid to workers, rent paid for farm land, etc.

Implicits costs on the other hand is called opportunity cost or alternative forgone.

The $25 per hour forgone by working on the farm land is implicit cost.

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i. there are large numbers of independently acting buyers and sellers

ii. the good that is produced and traded is homogenous or standardized.

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A competitive markets, also known as an atomistic market, is defined by a number of idealizing conditions, which are together referred to as perfect competition, or atomistic competition, in the field of economics, notably general equilibrium theory.
It has been shown that in theoretical models with competitive markets, a market will eventually find an equilibrium where the supply of all goods and services, including labor, equals the demand for all goods and services at the price in question.It would be Pareto optimal for this equilibrium to exist.
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2 years ago

Deadweight loss is the a. decline in government revenue when taxes are reduced in a market. b. decline in consumer surplus when

Marat540 [252]

Answer:

D, decline in total surplus that results from a tax.

Explanation:

Dead-weight loss is also known as excess burden. It is a situation where in there is a loss of economic sufficiency as a result of tax.

This economic sufficiency is when the supply of goods and services aren't met. That is, there is no market equilibrium between demand and supply. Taxes, subsidies, price rise or fall can be the reason for dead-weight loss as it causes the imbalance of demand and supply of goods or services to the consumers through price manipulations.

To calculate dead-weight loss, change in price as well as change in quantity demanded are important factors to consider.

Cheers.

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4 years ago

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3 years ago

Which of the following would not be an ethical problem created by employee relationships

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Answer:

The correct answer is letter "B": Investors expecting a return on their investment regardless of the cost.

Explanation:

<em>Ethical employee relationships</em> arise when one worker does not show his or her personal values affecting another employee. It is the result of the interaction between them that could lead to the violation of the Code of Ethics of the company.

Thus, <em>if investors expect returns on their investments, there is no employee conflict in that situation, ethical or not.</em>

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4 years ago

You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products

Margarita [4]

Answer: Please refer to Explanation

Explanation:

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