The change in the capital stock is a flow variable. a. True b. False

Sid has decided to leave his $70,000-a-year landscape design job and open a new kayak business. His insurance cost is expected t

madreJ [45]

Answer:

The correct answer is $15,500.

Explanation:

According to the scenario, the computation of the given data are as follows:

Revenue = $100,000

Insurance cost = $2,000

Design job leave = $70,000

Rent = $10,000

Annual depreciation = 10% × $25,000 = $2,500

So, we can calculate the economic profit by using following formula:

Economic Profit = Total Revenue - (Explicit cost + Implicit costs)

By putting the value, we get

= $100,000-($70,000 + $2,000 + $10,000 + $2,500)

= $15,500

7 0

3 years ago

in a _____ system, the distinction blurs between input, output, and the interface itself.

PSYCHO15rus [73]

User centered systems

6 0

4 years ago

Read 2 more answers

A. by how much will gdp change if firms increase their investment by $11 billion and the mpc is 0.9?

Sliva [168]

Answer:

The answer is "$110 billion".

Explanation:

Firms increase their investment by $11 billion

mpc = 0.9

gdp = ?

To find the gdp, first we have to find expenditure multiplier;

we will find that by using the formula;

expenditure multiplier = 1/(1-0.9) = 1/0.1 = 10

Now gdp = 10 x $11 billion

= $110 billion

Thus the gdp is $110 billion.

6 0

3 years ago

Eastern Electric currently pays a dividend of about $1.64 per share and sells for $27 a share.

Gre4nikov [31]

Answer:

a. 9.07%

b. 5.93%

c. 12.07%

Explanation:

Dividend valuation method is used to calculate the the value of stock based on the dividend paid, its growth rate and rate of return.

Stock Price = Dividend / ( Rate of return - Growth rate )

a.

$27 = $1.64 / ( Rate of return - 3% )

Rate of return - 0.03 = $1.64 / $27

Rate of return - 0.03 = 0.0607

Rate of return = 0.0607 + 0.03

Rate of return = 0.0907 = 9.07%

b.

$27 = $1.64 / ( 12% - Growth rate )

0.12 - Growth rate = $1.64 / $27

0.12 - Growth rate = 0.0607

Growth rate = 0.12 - 0.0607

Growth rate = 0.0593 = 5.93%

c.

$27 = $1.64 / ( Rate of return - 6% )

Rate of return - 0.06 = $1.64 / $27

Rate of return - 0.06 = 0.0607

Rate of return = 0.0607 + 0.06

Rate of return = 0.1207 = 12.07%

4 0

3 years ago

When the price level decreases, _____. rev: 06_12_2018 Multiple Choice the demand for money falls and the interest rate falls ho

beks73 [17]

Answer:

The demand for money falls and the interest rate falls.

Explanation:

Price level can be described as the evaluation of the amount in which goods and services are sold in the market. A change in the price level can greatly affect the demand of a customer either positively or negatively.

A decrease in the price level enables a customer to purchase more products and at the same time save some amount of money, this results in the reduction of interest rates.

When the price level reduces, individuals will need less amount of money to buy the same quantity and type of product.

6 0

3 years ago