Answer: Accounting profit= $44,500
Economic Profit = $4,150
Explanation: <em>Accounting profit</em> are the profit earned by subtracting explicit cost from the total revenue earned.
<em>Economic profit</em> are profits lefts out after subtracting implicit (opportunity) cost and explicit ( monetary) costs. It is given by
In this case, the explicit cost include rental cost, office supplies, office staff and telephone expenses.
While, implicit cost include the 7% interest foregone on the $5000 savings and the salary foregone ($40,000) by choosing to startup a business than take up the job.
Answer:
[ -0.13, -0.15 ] ( D )
Explanation:
Given data :
sample size ( n ) = 50
Independent variable ( p ) = 1
<u>determine the confidence interval for the slope </u>
Df ( degree of freedom ) = n - p - 1 = ( 50 - 1 - 1 ) = 48
b ( estimated slope ) = -0.23
Standard error of slope = 0.04
confidence interval = 95%
For confidence interval of 95% and Df of 48 ; critical value ( t ) = 2.011
∴ Confidence interval
= -0.23 ± ( 2.011 * 0.04)
= -0.23 ± 0.08044
= [ -0.13, -0.15 ]
the answer is d. discretionary changes in government spending and taxes
Answer:
A. supply curve shifts to the left
Explanation:
An increase in the prices of inputs from $4 to $6 shows economic problems that include a reduction in capital stock, labor, and an increased unemployment rate. This can also give room for inflation.
This increase shows that due to shortage in labor supply, it now costs more to produce a product.
Due to all the above mentioned reasons, the supply curve of both long run and short run supply curves shifts left.
Cheers.
