1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
antoniya [11.8K]
3 years ago
10

Suppose the local market for legal services has an upward sloping supply curve, PL = 150 +0.0001QL where PL is the price of lega

l services and QL is the number of hours of legalservices. If the equilibrium price of legal services is $250 per hour, what is the aggregateeconomic rent earned by lawyers in this market?
A) $50,000

B) $1,000,000

C) $50,000,000

D) $100,000,000

Business
2 answers:
Margaret [11]3 years ago
8 0

Answer:

C) $50,000,000

Explanation:

The aggregate rent is the surplus earned by the lawyers for operating over their cost at this market equilibrium.

In the picture attached, the rent is showed graphically.

At PL=$250 per hour, the amount of demanded hours is QL=1,000,000.

The oportunity cost at a zero hours level is PL(0)=$150.

The rent can be calculated as:

Rent=\frac{QL_{equil} x (PL_{equil}-PL_0)}{2}\\\\\\Rent=\frac{1,000,000*(250-150)}{2}= \frac{1,000,000*(100)}{2}=50,000,000

The aggregate rent is $50,000,000.

Anika [276]3 years ago
5 0

Answer:

The correct answer is option (C) $50,000,000

Explanation:

Given Data:

  PL = 150 + 0.0001QL

Pl = price of legal service

QL = number of hours in legal service

Equilibrium price of legal service = $250/hr

Economic rent earn = ?

From the equation given,

PL = 150 + 0.0001QL

when PL₁ = $250, we substitute to get the value of QL₁

QL₁ = (PL₁ - 150)/0.0001

      = (250-150)/0.0001

      = 100/0.0001

      = 1,000,000

At Zero hour, QL₀ = 0

Therefore, Pl₀ =  150 + 0.0001QL₀

                        = 150 + 0.0001 * 0

                        = 150+ 0

                        = $150

For calculating the aggregate economic rent, we use the formula;

Rent = [QL₁* (PL₁-pL₀)]/2

Substituting into the equation, we have

Rent =  [1,000,000 * (250-150)]/2

         = ( 1000000*100)/2

        = 100,000,000/2

         =$50,000,000

You might be interested in
Lori, head of Accounting, refused to sign Brian’s parental leave request. Brian is seeking 12 weeks of paid leave to care for hi
Setler79 [48]

No,Brain cannot able sue for wrongful termination and prevail for parental leave request

Explanation:

As per the Family and Medical Leave Act of 1993 requires 12 weeks of unpaid leave annually for the employees who delivered a new born baby. Under this law, legal parents are protected for up to 12 weeks of unpaid leave per year. The act ensures the job security of parents/employees but does not protect employees who go on paid leave with their employers.

The law clearly states that .,only unpaid leave can be taken by the employees as parental leave for 12 weeks. But in this situation Brain ask Lori for paid leave  which is cannot be availed as per law.So Lori has the rights to refuse to sign Brian’s parental leave request.

5 0
3 years ago
Which describes the liability of an owner of a sole proprietorship?
Vanyuwa [196]
Unlimited


hope this helps
3 0
3 years ago
Read 2 more answers
For the fiscal year ending December 31, previous year and the current year, Justin Co. has net sales of $1,000,000 and $2,000,00
Semmy [17]

Answer:

A) Accounts receivable turnovers are 10.0 and 6.6 and the ratios of uncollectible accounts receivable to gross accounts receivable are 0.30 and 0.16, respectively. Examine allowance for possible understatement of the allowance.

Explanation:

accounts receivable turnover from the previous year = total sales previous year / average gross receivables previous year = $1,000,000 / $100,000 = 10

accounts receivable turnover from the current year = total sales current year / average gross receivables current year = $2,000,000 / $300,000 = 6.67

ratios of uncollectible accounts receivable to gross accounts receivable for previous year = $30,000 / $100,000 = 0.3

ratios of uncollectible accounts receivable to gross accounts receivable for current year = $50,000 / $300,000 = 0.167

Option A shows the correct amounts for the accounts receivable turnover and ratios of uncollectible accounts receivable to gross accounts receivable. Since the ratio of uncollectible accounts receivable decreased so much during the current year, the allowance for accounts receivables for the current should be double checked to see if it wasn't understated.

4 0
3 years ago
Pinetops Resorts, an American company, sells the rights to other hospitality companies globally to open resorts with the Pinetop
Nadya [2.5K]

Answer:

franchising

Explanation:

Since in the given situation, the resorts should sold the rights to other companies for a fee and the share profit and in return they used the brand name and material & service packaging

So here the resort should be engaged in franchising as in the franchising the right is given to others for use the name

therefore the second last option is correct

8 0
3 years ago
The external market opportunities which are MOST relevant to a company are the ones that:
Liula [17]

Answer:

True

Explanation:

An organization looking to achieve its goals and objectives, should look for opportunities in the external environment that fit its internal resources and capabilities and give the organization competitive advantage over other competitors in the industry. This is known as a strategic fit.

Finding this strategic fit increases the organization's chances of growing and achieving its profitability goals.

7 0
2 years ago
Other questions:
  • A= The amount of tangible assets contributed by the new partner into the partnership
    14·1 answer
  • The master budgeting process typically begins with the sales budget and ends with a cash budget and:
    14·1 answer
  • Mary is purchasing a home for 145000 she is in the process of selling her present home for 85000 what will her down payment equa
    15·1 answer
  • The manager of a crew that installs carpeting has tracked the crew’s output over the past several weeks, obtaining these figures
    11·1 answer
  • Which of the following is not a benefit of a store channel shopping experience?
    14·1 answer
  • A young chef is considering opening his own sushi bar. To do so, he would have to quit his current job, which pays $20,000 a yea
    9·1 answer
  • Goodnight y’all ! I just wanted to tell y’all that
    7·2 answers
  • In the month of March, Baldwin corporation received orders of 169 units at a price of $15 for the product boat. Baldwin uses the
    11·1 answer
  • Equity securities acquired by a corporation which are accounted for by recognizing unrealized holding gains or losses in the inc
    10·1 answer
  • How is the value of a product determined?
    12·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!