Answer:
The income elasticity of demand for dog biscuits is Option D: positive, and dog biscuits are a normal good.
Explanation:
'Income elasticity of demand' refers to the reaction of the demand in quantity for a good or service to that of change in income.
'Normal goods' are the goods that are related positively with income whereas 'inferior goods' are those goods which are related negatively with income. As the income increases, there is a rise in demand for the dog biscuits. This means the dog biscuits are normal goods. Income elasticity for demand is positive for Danita as it is because of the rise in income. Hence, Option D is the most appropriate.
Existing business with a proven record. When you ask for investments, the lending institution will most definitely ask for your financial track record. They would want to know if you are a good paymaster because they will need the assurance that you can pay them back. Even if you have a really original idea and want to start a new business, there will still be some reservation if you have no track record because the lenders do not know if you are trustworthy or not. Unlike if you already have a proven record that you are a good paymaster, then you at least have proof that you can pay back.
Answer:
In equilibrium the maximum price set for a broken laptop to be sold is $600
Explanation:
According to the given data we have the following:
It is given that 40% laptops are in good condition. This implies that 60% are in bad condition.
In ordert to calculate the maximum price set for a broken laptop to be sold we would have to calculate the expected price that the buyers will be willing to pay for a laptop as follows:
Expected price=0.60($2000)+0.40($600)
Expected price=$1,200+$240
Expected price=$1,440
As the owners of good laptops are willing to sell their laptops for $1,800, whis is more that $1,440, they will not sell their products.
This implies that only bad laptops are sold in the market. The willingless to pay for the bad laptops is $600
Therefore, In equilibrium the maximum price set for a broken laptop to be sold is $600
Answer:
(B) If the explicit cost for the consulting job is $25,000 per year, your economic profit is equal to $45000.
Explanation:
Economic profit is obtained by substracting explicit (monetary) costs, and implicit (opportunity) costs, from total earnings.
In this case, the earnings for working as an economic consultant are $100,000. The implicit, opportunity cost is the $30,000 that are given up because of quitting the serving job. If the explicit cost of renting an office, purchasing supplies and buying a computer is $25,000, then, we have the following equation:
Economic profit = earnings - explicit costs - implicit costs
= $100,000 - $25,000 - $30,000
= $45,000
Answer:
b. $10,000 and $25,000
Explanation:
For computing the the book value of an asset
, first we have to determine the depreciation expense which is shown below"
So, under the straight-line method, the depreciation expense would be
= (Original cost - residual value) ÷ (useful life)
= ($45,000 - $5,000) ÷ (4 years)
= ($40,000) ÷ (4 years)
= $10,000
For two years, the depreciation would be
= $10,000 × 2 years
= $20,000
In this method, the depreciation is same for all the remaining useful life
Now the book value would be
= Acquired value of an asset - accumulated depreciation
= $45,000 - $20,000
= $25,000
