Answer:
The concept of economic profit ....... <u>alternative</u> two options.
If economic profit is positive .......... <u>Current </u>option.
If economic profit is negative............ <u>Other </u> option
Explanation:
Economic Profit is the excess of revenue associated with an option, over its costs (explicit external & implicit opportunity costs).
Example : Revenue - Direct explicit cost of production - opportunity cost (like interest on money invested, salary of job left foregone).
The concept is used to make decision between two<u> alternative</u> options. Given, zero economic profits imply indifference.
Positive Economic Profit implies - one should choose<u> Current </u>option, as it will make <u>Better off </u>, having more benefit than other option
Negative Economic Profit implies - one should choose <u>Other </u> option, as it wil make better off, having more benefit than the former considered option.
Answer:
correct option is B. 40.5
Explanation:
given data
P = 78 - 15 Q
Q = Q1 + Q2
MC1 = 3Q1
MC2 = 2Q2
to find out
What price should be charged to maximize profits
solution
we get here first total revenue and marginal revenue that is
total revenue TR = P × Q .......1
total revenue TR = 78Q - 15Q²
and
marginal revenue MR = 
marginal revenue MR = 78 - 30Q
now we get here
marginal revenue MR = MC1 = MC2
put here value
78 - 30Q1 - 30Q2 = 3 Q1 or 33 Q1 = 78 - 30Q2 ......................................a
78 - 30 Q1 - 30 Q2 = 2 Q2 or Q2 = 78 - 30Q1/32 ................................b
by equation a and b we get here
33 Q1 = 78 - 30 (78 -
)
so here Q1 = 1 and
Q2 = 78 - 
Q2 = 1.5
so that Q will be
Q = Q1 + Q2
Q = 1 + 1.5
Q = 2.5
now we get value of P that is
P = 78 - 15 Q
P = 78 - 15 (2.5)
P = 40.5
so charged to maximize profits is 40.5
so correct option is B. 40.5
Answer:
Present Value of the loan = $19999.36 rounded off to $20000
Explanation:
The present value of loan will comprise of the present value of the principal amount of loan plus the present value of the interest that the loan will charge for the 3 year time period for which it is outstanding. As the interest payments are fixed and occur after equal intervals of time, they are considered an annuity.
To calculate the present value of the loan, we must discount the interest payments using the present value factor of annuity given in the question as 2.5771 and we must discount the principal to present value using the present value factor given in question as 0.7938.
We will first calculate the annual interest payment on loan.
Annual Interest payment = 20000 * 0.08 = 1600
Present value of the Interest payment - annuity = 1600 * 2.5771
Present value of the Interest payment - annuity = $4123.36
Present value of the Principal loan = 20000 * 0.7938
Present value of the Principal loan = $15876
Present Value of the loan = 15876 + 4123.36
Present Value of the loan = $19999.36 rounded off to $20000
Answer:
like if you're in a pie challenge
Explanation:
and you eat the pies reaaaaallll fast bc you wanna win. then you're being competitive