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Drupady [299]
2 years ago
8

Jim left his previous job as a sales manager and started his own sales consulting business. He previously earned $70,000 per yea

r, but he now pays himself $25,000 per year while he is building the new business. What is the economic cost of the time he contributes to the new business?
Business
1 answer:
emmainna [20.7K]2 years ago
8 0

$45,000 per year is the economic cost of the time he contributes to the new business.

<h3><u>Explanation:</u></h3>

The difference between the accounting cost and the implicit cost refers to the economic cost. Implicit cost refers to the opportunity cost that the person incurs when he makes a choice. For example consider Geetha is spending something for watching a movie. The cost that she spends for the movie and the cost that can be forgone by her when she spends that for some other things will be included in the economic cost.

In the example given Jim  was earning d $70,000 per year and now he is paying himself  $25,000 per year for building a new business. Thus the economic cost will be $70,000 -$25,000 = $45,000 per year. Here the accounting cost is  $70,000  and the implicit cost is $25,000.

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A company had the following purchases during its first year of operations:
Readme [11.4K]

Answer:

Ending inventory value= $9,127

Explanation:

Giving the following information:

January: 17 units at $127

February: 27 units at $137

May: 22 units at $147

September: 19 units at $157

November: 17 units at $167

<u>Using the specific identification method, we need to multiply each unit for its specific cost.</u>

<u></u>

Ending inventory:

January= 9*127= 1,143

February= 11*137= 1,507

May= 13*147= 1,911

September= 11*157= 1,727

November= 17*167= 2,839

Ending inventory value= $9,127

5 0
2 years ago
According to the​ "rule of​ 70", how many years will it take for real gdp per capita to double when the growth rate of real gdp
slava [35]

14 Years.

The rule of 70 is a measure of how long it takes for something to double. 70 is divided by the rate of growth or rate of return.

70/5% = 14 years

8 0
3 years ago
_is any place where goods are produced or distributed or services areproduced​
ella [17]
A factory is any place where goods are produced or distributed or services are produced.
5 0
2 years ago
If producing each additional unit of good x required giving up ever-increasing amounts of good y, the production possibilities c
Hatshy [7]

If producing each additional unit of good x required giving up ever-increasing amounts of good y, the production possibilities curve between x and y would be bowed outward.

The law of increasing possibility fee: As you increase the manufacturing of 1 appropriate, the opportunity fee to provide the additional precise will boom.

First, understand that opportunity price is the fee of the following-high-quality alternative when a decision is made; it's what's given up.

When the economy grows and all other matters continue to be steady, we are able to produce greater, so this will motivate a shift in the manufacturing opportunities to curve outward, or to the proper.

Learn more about production here: brainly.com/question/26460726

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5 0
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PtichkaEL [24]

Answer:it is d

Explanation:

5 0
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