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Genrish500 [490]
3 years ago
7

Hubert lives in New York City and runs a business that sells boats. In an average year, he receives $723,000 from selling boats.

Of this sales revenue, he must pay the manufacturer a wholesale cost of $423,000; he also pays wages and utility bills totaling $267,000. He owns his showroom; if he chooses to rent it out, he will receive $2,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Hubert does not operate this boat business, he can work as a financial advisor, receive an annual salary of $20,000 with no additional monetary costs, and rent out his showroom at the $2,000 per year rate. No other costs are incurred in running this boat business.
Identify each of Darnell's costs given below as either an implicit cost or an explicit cost of selling pianos.

a. The rental income Darnell could receive if he chose to rent out his showroom
b. The wages and utility bills that Darnell pays
c. The salary Darnell could earn if he worked as a financial advisor
d. The wholesale cost for the pianos that Darnell pays the manufacturer
Business
2 answers:
vodomira [7]3 years ago
6 0

Answer:

A. the rental incomw darnell could receive if he choose to rent out his showroom

myrzilka [38]3 years ago
6 0
Correct answer is A.
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Suppose there are 1000 firms in a market and all are identical. Firm A will hire 20 workers when the wage rate is $10, 25 worker
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Answer:

d. the quantity demanded for the market will increase to less than 30,000 workers.

Explanation:

Missing options:

  • a. the quantity demanded for the market will increase to 30,000 workers.
  • b. the quantity demanded for the market will increase to more than 30,000 workers.
  • c. the quantity demanded for the market will increase, but we can't tell which of the above answers is correct.
  • d. the quantity demanded for the market will increase to less than 30,000 workers.

maximum total demand for labor = 30 (at $8) x 1,000 firms = 30,000 workers, but since the equilibrium rate had been $9 for many years, some workers have already been hired at $9, and it is usually very difficult to lower someone's wage once they have been working. Even thought the quantity demanded will increase, it will probably not be able to reach 30,000 workers.

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C. W-4

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The W-4 form acts as the Employee’s Withholding Allowance Certificate. The employee completes the form and hands it over to the employer, who uses it to calculate how much income tax to withhold.

The details on the W-4 forms are necessary for tax computation. For instance, the employee declares their marital status and the number of dependents; this determines the applicable tax rates.

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