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-BARSIC- [3]
3 years ago
14

A company owns an empty office building and is deciding how to use it next year. It would cost $100,000 to staff the office and

$15,000 for equipment. The revenues would be $160,000. Meanwhile, it could rent the office to another company for $75,000 in revenues. In both cases, the company must pay $5,000 for the building's electricity.
Required:
a) If the company is seeking to maximize its economic profit, which course should it pursue and what is the outcome?
Business
1 answer:
Galina-37 [17]3 years ago
5 0

Answer:

It is more profitable to rent the office. Income will increase by $30,000

Explanation:

Giving the following information:

It would cost $100,000 to staff the office and $15,000 for equipment. The revenues would be $160,000.

Rent= $75,000 in revenues.

We need to calculate the most profitable decision:

Option A:

Income= 160,000 - 100,000 - 15,000= 45,000

Option B:

Rent= 75,000

It is more profitable to rent the office.

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Categorize each statements as a component of Gross Domestic Product (GDP): consumption, investment, government, or net exports.
Viefleur [7K]

Answer:

'Government Expenditure' not 'Government' is a component of GD[

Explanation:

GDP is the total value of goods & services produced in an economy during an year.

As per Expenditure method :

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For an investment in a stock, the probability of the return being –10.0% is 0.3, 10.0% is 0.4, and 30.0% is 0.3. given the proba
Nataliya [291]
The expected return will be given by:
E(R)=Total sum of the expected return
E(R)=-0.1*0.3+0.1*0.4+0.3*0.3
E(R)=-0.03+0.04+0.09
E(R)=0.1=10%

We therefore conclude that the expected return is 10%
4 0
3 years ago
3. Balancing utility and price Suppose Tim has to choose between purchasing high-definition televisions and juice. Which of the
Rom4ik [11]

Answer: Option (C) is correct.

Explanation:

The following rule should be use to choose the optimal quantities of two goods:

\frac{MU\ of\ Juice}{Price\ of\ Juice} =\frac{MU\ of\ HDTVs}{Price\ of\ HDTVs}

Marginal utility refers to the utility that a consumer can get from the additional unit of a commodity.

\frac{MU\ of\ Juice}{MU\ of\ HDTVs} =\frac{Price\ of\ Juice}{Price\ of\ HDTVs}

From the above equation, we can predict that marginal utility from the last TV is greater than the marginal utility obtained from the last gallon of juice. We know that Juice is less expensive as compared to the price of TV.

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What is double jeopardy?<br> Explain how this vocabulary<br> word relates to the 5th<br> Amendment.
kykrilka [37]

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Explanation:

The Fifth Amendment to the Constitution states that "no one is twice liable to be targeted at the same offense." The Double-jeopardy Clause bars any second prosecution or conviction and forbids multiple penalties of the same offense.

Double jeopardy does not shield suspects from being charged for multiple offenses, while separate charges are prohibited for the same crime.

For example,  An convicted person could again be charged on the "less included crime" of involuntary killing.

6 0
2 years ago
Measuring employment, unemployment, and labor force participation
ch4aika [34]

Answer and Explanation:

The classification is as follows

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b.France is considered to be unemployed as currently he hasn't had a job he is still looking for a job

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e. Nick is to be considered as an employed as he is currently working

f. Latasha is to be considered in not in the adult population as she is just 12 year old student

7 0
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