Answer:
(a) $35,000
(b) $8,000
Explanation:
(a) Accounting profit:
= Total revenue - Explicit cost
= $75,000 - (wages + Annual rent + Material cost)
= $75,000 - ($13,000 + $5,500 + $21,500)
= $75,000 - $40,000
= $35,000
(b) Economic Profit:
= Total revenue - Explicit costs - Implicit costs
= $75,000 - (wages + Annual rent + Material cost) - (Income from investment + Earnings as a potter + Worth of entrepreneurial talents)
= $75,000 - ($13,000 + $5,500 + $21,500) - ($5,500 + $19,000 + $2,500)
= $75,000 - $40,000 - $27,000
= $8,000
Find the gross profit fro the sale of the television:
Gross profit = Sales - Cost of goods sold
Gross profit = $1,600 - $225
Gross profit = $1,375
The gross profit of a sale is the profit from sales minus the cost it took to produce/complete the item or service.
Answer:
a, The PPF intersect the Y-axis at 1000 units of luxury goods
The PPF intersect the X-axis at 500 units of necessity good
It means that when the society produces zero units of necessity, it can produce 1000 units of luxury goods and if they use all resources to produce necessity, they can produce 500 units only
b. The economy can produce at a point inside the curve IF (1) There is underutilized of the available resources. (2) There is inefficiency in the use of resources
c. I will want to produce more necessity than luxury. The decision on which point the society will want to be depend on the type of economic system being practiced by my society, if it is free market, the price system will determine it and for a socialist system, the government decides.
d. If I am a dictator, I will make decrees as to the economic direction I want for the society and where the product distribution is left to the free market, the price system decides.
Explanation:
The production possibility frontier is a graph that shows the trade-off between two commodities which a country can be assumed to produce. An economy can operate on the PPF in which case it is using its resources to the fullest. It can operate inside the curve which means under-utilization of resources or inefficiency in resources utilization. A country cannot operate outside the curve except there is technological progress or economic growth.
Answer: Household employees, for the babysitting one, occasionally nann(y/ies) or babysitter(s)
Explanation:
Both but fixed goes first so a is correct
