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LenaWriter [7]
3 years ago
10

You own a house that you rent for $1,325 per month. The maintenance expenses on the house average $245 per month. The house cost

$228,000 when you purchased it 4 years ago. A recent appraisal on the house valued it at $250,000. If you sell the house you will incur $20,000 in real estate fees. The annual property taxes are $2,950. You are deciding whether to sell the house or convert it for your own use as a professional office. What value should you place on this house when analyzing the option of using it as a professional office?a. $225,480b. $250,000c. $0d. $230,000e. $228,000
Business
1 answer:
ANTONII [103]3 years ago
5 0

Answer:

d. $230,000

Explanation:

Calculation to determine What value should you place on this house when analyzing the option of using it as a professional office

Using this formula

Opportunity cost = Recent appraisal on the house - Real estate fees

Let plug in the formula

Opportunity cost = $250,000 - $20,000

Opportunity cost = $230,000

Therefore the value you should place on this house when analyzing the option of using it as a professional office is $230,000

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Answer:

a.Georgeland has an absolute but not a comparative advantage in producing clothing.

Explanation:

A country has a comparative advantage in production if it produces at a lower opportunity cost when compared with other countries.

A person has an absolute advantage in production if it produces more quantities of the good when compared with other countries.

Georgeland produces more quantities of both food and clothes when compared to Alland, so it has absolute advantage in both activities .

The opportunity cost of georgeland in producing clothes = 36 / 18=2

The opportunity cost of georgeland producing food = 18 / 36 = 0.5

For Alland,

the opportunity cost of producing clothes = 32 / 16= 2

the opportunity cost of producing food = 16 / 32 = 0.5

Neither countries don't have a comparative advantage in the production of either clothes of food bedside they have the same opportunity costs in both activities.

I hope my answer helps you

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