Answer:
<em>An </em><em><u>accounting</u></em><em><u> </u></em><em><u>profit</u></em><em> is calculated by subtracting the firm's costs from its total revenues, </em><em><u>excluding</u></em><em><u> </u></em><em><u>opportunity</u></em><em><u> </u></em><em><u>cost</u></em>
The average nominal risk premium on the long-term government bonds was 2.6 percent.
A risk premium is the expected investment return on an asset that is higher than the risk-free rate of return. The risk premium on an asset is a form of compensation for investors. It compensates investors for tolerating the additional risk in a given investment over that of a risk-free asset. Subtracting the return on risk-free investment from the return on investment yields the risk premium.
The nominal risk premium is:
Nominal Risk-Free Rate - Inflation Premium = Real Risk-Free Rate. Nominal rates are the rates we encounter on a daily basis, such as interest rates from banks and other financial institutions.
Nominal risk premium = 6.1 % -3.5 %
= 2.6%.
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Answer:
D) social cost
Explanation:
Social costs are the total costs beared by the entire society. Social costs includes all the private production costs plus all the externalities.
Marginal social costs are the marginal costs beared by the entire society, and it includes all the private marginal production costs and the marginal costs of externalities.
Answer:
a. $288,000
b. $190,000
Explanation:
The Accounting equation: Assets = Liabilities + Equity
a. Assets = Liabilities + Equity
382,000 = 94,000 + Equity
Equity = 382,000 - 94,000
= $288,000
b. Equity as of December 20Y9.
Account for the changes in assets and equity:
Assets = Liabilities + Equity
(382,000 - 63,000) = (94,000 + 35,000) + Equity
319,000 = 129,000 + Equity
Equity = 319,000 - 129,000
= $190,000
