Answer:
The correct option is B
Explanation:
In order to compute the profit, the accountant consider the Explicit cost so,
Explicit Cost = Borrowed amount × Interest rate + Ingredients amount
= $30,000 × 3% + $25,000
= $259,000
Where Revenue is $60,000
Profit = Revenue - Explicit Cost
= $60,000 - $259,000
= $34,100
Economic Profit is computed as:
Economic Profit = Total Profit - Implicit Cost
= $34,100 - $40,600
= - $6,500
where
Implicit Cost = Salary + Interest
= $40,000 + ($20,000 × 3%)
= $40,000 + $600
= $40,600
Therefore, Louis says profit is $34,100 and Greg says she lost $6,500
<span>Retired people reported the least amount of stress during 1983, 2006, and 2009. Retired people obviously do not have to deal with the stress of a career or job, they most likely do not have to raise children and they are free to engage in any pleasurable activity they please.</span>
Answer:
is not efficient because firms can have different costs of reducing pollution.
Explanation:
Economic efficiency is the way a business maximises the use of factors of production (land, labor, capital) to produce output at a reduced cost. Efficiency aims to improve output and reduce cost to the barest minimum.
In this instance to individual cost required to reduce sulfur dioxide emissions is not considered by the government.
Since reduction of sulfur dioxide is equal among firms, some smaller ones may incur cost that will financially impair them and put them out of business.
While bigger firms will easily bear the cost.
Answer:
<u>Opportunity cost </u>
Explanation:
Suppose that a university decides to spend $ 1 milion to upgrade personal computers and scientific equipment for faculty rather than spend $ million to expand parking for students . This example illustrates<em><u> opportunity costs.</u></em>
<em>Opportunity cost refers to the cost shifting one opportunity to another opportunity or availing one opportunity in terms of another.</em>
Formula of Opportunity cost is :
<u>Opportunity cost</u> = Total Revenue - Economic Profit
Or
<u>Opportunity cost </u> = What one sacrifice / What one gain
In Opportunity cost we chose one thing or option over the cost of another thing or option. Opportunity cost places a important role in economic theory .
As it tell us that people can choose only one thing not the both things at the sane time.
Answer:
It is good
Explanation:
Alicia would have an easier time splitting money and saving money towards different goals. Such as putting 40% of your paycheck into savings and splitting the 40% into 10% for each savings account.
