Answer:
9%
Explanation:
According to the given situation, the solution of return on investment is shown below:-
Return on investment = (Net operating income ÷ Average operating assets) × 100
now, we will put the values into the above formula
= ($45,360 ÷ $504,000) × 100
= 0.09 × 100
= 9%
Therefore for computing the return on investment we simply applied the above formula.
Command economies have public enterprises where the government controls everything including business and production. In socialism, the means of production, distribution, and exchange are owned or regulated by the community as a whole.
Answer: Economic Surplus : $12
Explanation: Economic surplus is the difference between benefit and cost.
In this case, since he is working as a math tutor, he will get $45, there is no other cost. But if he goes for a movie, he will have to spend $12 on movie, which is the cost he needs to bear. The economic surplus is $12 which is not spent on the movie and worked as a math tutor.
Answer:
the low opportunity cost producer.
Explanation:
A person or nation has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries or people.
For example, let's assume country x produces either 10 Apples or 5 oranges in 1 hour while country y produces either 20 Apples or 2 oranges in one hour. The opportunity cost for country x of producing apples and oranges are 0.5 and 2 respectively. While for country y, the oopportunity cost of producing apples and oranges are 0.1 and 10 respectively.
Country y has an opportunity cost and comparative advantage in the production of Apples while country x has a comparative advantage in production of oranges.
I hope my answer helps you
Answer:
Each company drills two wells and experiences a profit of $22 million.
Explanation:
If each company acts independently and drills two oil wells each they will have a total of 4 wells each worth (60 million ÷ 4= $15 million.
Each company will have two oil wells which equals (2* 15 million = $30 million)
But each company incurs cost of $4 million per well. That is total cost of $8 million.
Therefore the profit for each company will be $30 million - $8 million= $22 million
