Answer:
Accounting profit=$300,000
Explanation:
<em>Accounting profit is the difference between revenue from from production or service activities and the expenditures incurred. </em>
<em>It is the difference between the total revenue and the</em><em> total explicit costs</em><em>. Explicit costs are those transaction cost incurred to generate revenue . E.g the cost of the material , labour, expenses e.tc.</em>
On the other hand, economic profit includes accounting profit plus opportunity cost. Opportunity cost is the value of the benefits sacrificed in favour of a decision.
Accounting profit = Sales revenue - Explicit cost
Sales revenue = Price × units sold= $15× 1000× 30 = $450,000
1
Explicit cost = $150,00
Accounting profit = $450,000- 150,000 = $300,000
Accounting profit=$300,000
Note we ignore the amount she could have earned because it is an implicit cost
Answer:
a. required to pay a tax of $0.45 per gallon of gasoline sold.
Explanation:
The marginal external cost shows the difference between the private cost and the social cost. Also it should be the tax imposed amount. In the given case, the value is of $0.45 this represent that there is the tax of $0.45 that should be imposed on the producers in order to internalize the external cost
Therefore, the option a is correct
The answer is d all of the abovten
Answer:
The answer is: The price elasticity of demand for a good measures the willingness of buyers of the good to buy less of the good as its price increases.
Explanation:
The price elasticity of demand measures the change in the quantity demanded of a product in relation to a change in its price.
The formula for determining the price elasticity of demand (PED) is:
PED = % of the change in Quantity Demanded / % of the change in price
If a good has a high PED (≥ 1) then it is called elastic, which means that any change in the price will change the quantity demanded in a greater proportion. If a good has a low PED (≤ 1) then it is called inelastic, which means that any change in the price will affect the quantity demanded in a smaller proportion.
Usually goods or services considered luxurious (e.g. gourmet cheese), tend to be very elastic (high PED). While products considered basic necessities (e.g. gasoline) tend to be very inelastic (low PED).
