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Umnica [9.8K]
3 years ago
5

Ralph owns a small pizza restaurant, where he works full-time in the kitchen. His total revenue last year was $100,000, and his

rent was $3,000 per month. He pays his one employee $2,000 per month, and the cost of ingredients and overhead averages $500 per month. Ralph could earn $35,000 per year as the manager of a competing pizza restaurant nearby. His total implicit costs for the year were:
Business
1 answer:
andre [41]3 years ago
8 0

Answer: $35,000

Explanation:

Implicit costs can be described as opportunity cost : the cost that could have accrued to a resource owned by a firm if it had been put to another use.

Ralph could have earned $35,000 if he were employed elsewhere. Therefore, the $35,000 is the opportunity cost of owning his pizza hut. It is the implicit cost.

The other costs in the question are explicit costs.

I hope my answer helps you.

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In Macroland, autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, plan
alina1380 [7]

Answer:

B) 1,160.

Explanation:

First we must calculate planned aggregate expenditures (PAE) and then determine where Y = PAE:

PAE = consumption + planned investment + government spending + net exports = 100  + 0.75(Y - 40) + 50 + 150 +20 = 100 + 0.75Y - 30 + 50 + 150 + 20 = 290 + 0.75Y

Now we must determine where Y and PAE intercept:

Y = 290 + 0.75Y

Y - 0.75Y = 290

0.25Y = 290

Y = 290 / 0.25 = 1,160

*Planned aggregate expenditure = total planned spending, it differs from GDP because GDP includes unplanned investment.

PAE = C + Ip + G + NX   while  GDP = C + I + G + NX

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3 years ago
In a longitudinal study of individuals who reached age 55 with an optimal cardiometabolic risk profile, men had a risk of heart
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3 years ago
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What is the amount of interest earned after two years on a $100 deposit paying 4 percent simple interest annually?
klasskru [66]

Answer:

$8

Explanation:

The yearly amount of interest earned on a $100 deposit at 4 percent rate is:

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Since simple interest investments yield a constant interest each year, the amount earned after two years is:

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The cost to manufacture one unit of Killian Audio Products' best-selling hearing aid, the Zone, is $67.50. The CFO of the compan
ikadub [295]

Answer:

Economies of scale

Explanation:

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Variable costs vary directly with output, while fixed costs do not, e.g. salaries can be fixed, depreciation, rent, interests, etc. The higher the output, the lower the average fixed cost per unit.

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Answer:

3. Most top managers at family firms tend to stay in their positions much longer than those at nonfamily firms.

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