Answer:
a. $238,000
b. $292,000
Explanation:
a. Explicit Costs
These are the accounting costs associated with running the business
= Rent + Employee wages + Materials and Utilities
= 50,000 + 180,000 + 8,000
= $238,000
b. Total Cost = Explicit + Implicit Costs
Implicit Costs = Benefits foregone
= 50,000 + (5% * 80,000 if she invests the money instead)
= $54,000
Total cost = 238,000 + 54,000
= $292,000
Answer:
Over longer periods of time, demand tends to become more elastic.
When there are fewer substitutes, demand tends to be less elastic.
Explanation:
Over longer period of time demand tend to be more elastic because the greater availability of close substitutes of a good the better consumers are able to respond to change in price.
Answer:
The manager has done nothing wrong
Explanation:
The manager has done nothing wrong because there is no indication of a non competition agreement between penny and her boss and even if there was, the manager was not aware that penny was working somewhere else as at the time of making the offer.
Answer:
2 years and 5 months
Explanation:
304,000 Investment
+86,000 operating income
+ 38,000 depreciaton (non-cash expense)
124,000 cash flow per year
<em>Note: </em>The non-cash expense should be excluded from the calculaton of the payback period.
304,000/124,000 = 2.451612903 years
0.451612903 x 12 = 5.419354839
2 years and 5 months
Answer:
The money supply should be set at 800
Explanation:
In this question, we are asked to calculate the value at which Fed should set the money supply at after fixing the interest rate at 7 percent.
We proceed as follows;
Let the new money supply be M.
To fix the interest rate at 7%, r= 7 and P = 2
(M/P)d = 2,200 - 200r
= 2200 - 200(7)
=2200-1400
= 800
M = 800