Answer:
-$475,000
Explanation:
Total revenue = Baskets of peaches × Price
= 100,000 × $3
= $300,000
Explicit cost:
= Rent equipment + wages
= $100,000 + $100,000
= $200,000
Implicit cost:
= Land × Interest + salesman earned
= $1,000,000 × 0.55 + $25,000
= $575,000
Total cost = Explicit cost: + Implicit cost
= $200,000 + $575,000
= $775,000
Economic profit = Total revenue - Total cost
= $300,000 - $775,000
= -$475,000
Answer:A. assumes that demand for loanable funds increases with supply remaining unchanged
Explanation:
Loanable funds is the sum total of all the money people and entities in an economy have decided to save and lend out to borrowers as an investment rather than use for personal consumption. ... One way to make an investment is to lend money to borrowers at a rate of interest.
Answer:
The bonds sold at: $122,106,600 dollars
Explanation:
We will calculate the present value of the coupon payment and the maturirty at market rate of 7%
C 2.7(90 millions x 6% / 2 payment per year)
time 20 10 years and 2 payment per year
discounted at market rate: 7% divide by 2 payment per year: 0.035
PV 76.3551
Then present value of maturity:
Maturity 90.00
time 10 years
rate 0.07
PV 45.75
PV coupon $76.3551
PV maturity $45.7514
Total $122.1066