Answer:
$-12,000
Explanation:
Economic profit is accounting profit less implicit cost or opportunity cost.
Economic profit = Accounting profit - Opportunity cost
Accounting profit = total Revenue - total Cost
$260,000 - $230,000 = $30,000
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
The opportunity cost of Rosemarie starting her own restaurant is the salary she woold have been earning if she didn't leave her job = $12,000
Also the opportunity cost of using the space she inherited is the rent that would have been paid if she didn't use it as a restaurant = $30,000
Total opportunity costs = $30,000 + $12,000 = $42,000
Economic profit = $30,000 - $42,000 = $-12,000
I hope my answer helps you
I think the answer to this is A. True
Hope this helped.
Answer:
Northeast AutoParts's
Cash Budget
January February
Cash inflows:
- Customers' credits $11,000 $15,200
- Business note <u> $8,500</u> <u> </u>
Total cash inflows $19.500 $15,200
Cash outflows:
- Inventory purchases ($15,600) ($14,800)
- selling and adm. expenses <u> ($2,900) </u> <u> ($2,900) </u>
Total cash outflows ($18,500) ($17,700)
Monthly cash flow $1,000 ($2,500)
Initial cash balance <u>$10,500</u> <u>$11,500</u>
Ending cash balance $11,500 $9,000
Required bank loan <u> $0 </u> <u> $1,000 </u>
Total $11,500 $10,000
Explanation:
January 1, beginning cash $10,500
cash collections from customers' credits:
- January $11,000
- February $15,200
- also a business note for $8,500 in January
estimated cash outflows:
- January $15,600
- February $14,800
- S&A expenses $2,900 each month
Bank's minimum balance $10,000
loans in multiples of $1,000
Answer:
The various steps are as follows:
Explanation:
1. Intellectual property
• There must be fair as well as effective incentives for innovation provided by the system.
• Talking about the rights, there must be certainty that must be given to innovators.
• Enforcement tools must be given to patent holders for defending infringed patents.
2. Neglected Disease
• There must be co-operation involved with governments of globe and non-governmental organizations (NGO’s)
• Not only the funds but medicines must be donated.
• In order to invent new medicines, drug discovery must be shared, and work of expertise must be shared.
3. Counterfeit Drug
• There must be promotion for safe online buying.
• Criminal networks must be rooted out.
• In order to fight against counterfeit drug issue, work must be done with public and private partners.
The reason that firms in perfect competition earn zero economic profit, in the long run, is that b. there are no barriers to entry or exit.
<h3>
What is economic profit?</h3>
Economic profit is the difference between a firm's total revenue and total cost, where total cost includes both explicit and opportunity costs. Economic profit is also known as excess profit or supernormal profit. A firm can earn an economic profit in the short run if it has market power and can charge a price above the marginal cost of production. In the long run, a firm can earn an economic profit if it has a competitive advantage over its rivals. A competitive advantage can arise from a variety of sources, including economies of scale, product differentiation, and the ability to access scarce resources.
In perfect competition, firms can freely enter and exit the market, which prevents any one firm from earning sustained economic profits. If one firm earns profits above the normal level, other firms will enter the market, driving down prices and profits. In the long run, firms in perfect competition earn only enough revenue to cover their costs, and they earn zero economic profit.
It can be concluded that the reason that firms in perfect competition earn zero economic profit, in the long run, is that b. there are no barriers to entry or exit.
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