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lions [1.4K]
2 years ago
8

The city of New Orleans has 200 advertising companies, 199 of which employ designers of normal ability at a salary of $100,000 a

year. The firms that employ designers of normal ability each collect $600,000 in revenue a year, which is just enough to ensure that each earns exactly a normal profit. However, the 200th company employs Janus Jacobs, an unusually talented designer. Because of Jacobs's talent, this company collects $1,000,000 in revenue a year.
a. How much will Jacobs earn?

$ per year.

What proportion of her annual salary will be economic rent?
Instructions: Enter your response as a percentage rounded to the nearest whole number.

%.
b. Will the advertising company for which Jacobs works be able to earn an economic profit?
Yes/No
Business
1 answer:
Gennadij [26K]2 years ago
5 0

Answer:

a. $700,000

86%

c. No

Explanation:

a. Jacobs will earn $700,000 per year. This equals the normal salary for a designer, $100,000, plus the economic rent he collects for his special talent, $600,000.  

6/7 or 0.857 or 86% of his salary is thus economic rent. This is found by 600,000/700,000

b. The answer is No. If Jacobs’s employer withholds some of the additional revenue it takes in as a result of hiring him, some other advertising company will offer him a higher salary and still manage to earn an economic profit. Bidding for Jacobs will continue until firms are indifferent between paying him $600,000 and hiring any other designer for $100,000.

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Answer:

Capitalism

Explanation:

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vWhat are the most likely consumer market segments for robots? Which consumer characteristics would be important to determine th
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Answer:

1- The most relevant segments are young adults between 20-30 years old who generate their own resources because the robots would be expensive.

2- The most outstanding characteristics of consumers would be:

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3 years ago
3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash?
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Complete Question:

The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $166,436. The bank statement indicated a balance of $195,688 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:

a.  Checks outstanding totaled $19,427.

b.  A deposit of $12,300, representing receipts of June 30, had been made too late to appear on the bank statement.

c.  The bank collected $26,500 on a $25,000 note, including interest of $1,500.

d.  A check for $4,000 returned with the statement had been incorrectly recorded by Pala Medical Co. as $400. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account.

e.  A check drawn for $195 had been erroneously charged by the bank as $915.

f.  Bank service charges for June amounted to $55.

Answer:

Pala Medical Co.

Cash amount in the balance sheet = $189,281

Explanation:

a) Calculations:

Adjusted Cash balance at June 30, 20Y1

Cash balance                      $166,436

c) Note received by bank      25,000

c) Interest on the note             1,500

d) Returned check                 (3,600)

e) Bank charges                         (55)

Adjusted cash balance     $189,281

b) Balance as per bank statement = $195,688

a.  Checks outstanding totaled           ($19,427)

b.  A deposit of                                     $12,300

e. Overstated cheque                               720

Adjusted bank statement balance   $189,281

c) Preparing a bank reconciliation helps to identify discrepancies between the cash book balance of Pala Medical Co and the company's bank statement balance.  After the necessary adjustments, the two balances always agree and the adjusted figure is taken to the balance sheet.

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Answer:

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Answer:

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