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GarryVolchara [31]
3 years ago
12

Monica quit her $50,000 per year job, purchased a building that was previously rented by the operator of a candy store for $1,50

0 per month, and used the space to breed and sell tropical fish. In her first year she made a business profit of $60,000. What was her economic profit? A. She had an economic loss of $8,000. B. $10,000 C. $42,000 D. Her economic profit was the same as her business profit.
Business
1 answer:
tatyana61 [14]3 years ago
3 0

Answer: She had an economic loss of $8,000.

Explanation:

Economic profit = Accounting profit - Opportunity cost

Accounting profit = Revenue - Total Cost.

Monica's Opportunity cost is the amount she would have been earning if she didn't start her business. It is $50,000.

Total cost = $1500 × 12 = $18,000

Accounting profit = $60,000 - $18,000 = $42,000

Economic loss = $42,000 - $50,000 = $ -8000

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Answer:

 an improvement in the education level of the work force of a nation

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1. Increase in labour force

2. Increase in education level of the Labour force

3. Technological advancement

Shifting resources from the production of one good to the production of another leads to a movement along the production possibility curve.

I hope my answer helps you

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3 0
3 years ago
Cal Lury owes $25,000 now. A lender will carry the debt for four more years at 10 percent interest. That is, in this particular
vitfil [10]

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$6,185.31

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Value of debt at end of 4 years = $25,000 * (1 + 10%)^4

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x * [1 - (1.13)^-12] / 13% = $36,602.50

x * [1 - 0.2307059] / 13% = $36,602.50

x * 0.7692941/0.13 = $36,602.50

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So therefore, his annual payment will be $6,185.31.

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3 years ago
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