Answer and Explanation:
The identification of each transaction as an explicit cost or implicit cost is as follows
a. It is an explicit cost as the cost would be paid to the factors of production
b. It is also an explicit cost as the cost would be paid to the factors of production
c. It is an implicit cost as it is considered to be the hidden cost
d. It is also an implicit cost as it is considered to be the hidden cost
The answer is marginal revenue (MR) curve above $22.
Explanation:
Jim and Lisa Groomers will maximize its accounting profit when taking it to 0 its economic profits when marginal revenue = marginal costs.
Economic profits are not the same as accounting profits because they include the opportunity costs of investing the money somewhere else. That is whythe long run firm is not able to make economic profits since as they exist, new competitors will enter the market. But in the case of the shoert run, the firms are able to make economic profit, but by doing so, they cannot maximize their accounting profit.
Economic profit = account profit = Opportunity profit
Opportunity cost are extra costs or benefitslost from choosing one activity or investment over another one.
Answer:
You should buy the car.
Explanation:
Note: See the attached excel file for the worksheet that shows calculations of the present values of the Lease and Buy Options.
In the attached excel file, we have:
Net present value of Lease Option = $3,654.01
Total present value of Buy Option = $4,135.47
Difference = Total present value of Buy Option - Present value of Lease Option = $481.46
The Difference above shows that the total present value of Buy Option is greater than the net present value of Lease Option by $481.46.
Since the total present value of Buy Option of $4,135.47 is greater than the net present value of Lease Option of $3,654.01, you should buy the car.
It is referred as market control<span />
