Answer:
yes
Explanation:
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Answer:
Lobbying
Explanation:
This is a tool used since the beginnings of political organized society. Nowadays it is considered a business practice and there are enterprises that use lobby to influence politicians in order to meet the objectives they want to attain with actions such as passing of bills.
LaRhonda realized and recognized gain or loss are: $45,000; $35,000.
a. LaRhonda realized gain:
Using this formula
Realized gain = (Cash + Fair market value of building + Mortgage) - Adjusted basis
Let plug in the formula
Realized gain = ($15,000 + $50,000 + $20,000) - $45,000
Realized gain = $85,000-$45,000
Realized gain = $40,000
b. LaRhonda recognized gain or loss
Using this formula
Recognized gain = Cash + Mortgage
Let plug in the formula
Recognized gain =$15,000 +$20,000
Recognized gain= $35,000
Inconclusion LaRhonda realized and recognized gain or loss are: $45,000; $35,000.
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Answer:
1. I grouped the costs into explicit and implicit costs below
2. accounting profit = 89000
3. economic profit = 3000
4. daniel should stay in the piano business
Explanation:
<u>explicit costs include</u>:
1. The wholesale cost for the pianos that Darnell pays the manufacturer at $452000
2. The wages and utility bills that Darnell pays at $301000
<u>the implicit costs include:</u>
1. The salary Darnell could earn if he worked as an accountant at $48000
2. The rental income Darnell could receive if he chose to rent out his showroom at $38000
<u>accounting profit</u><u>:</u>
842000-452000-301000
= 89000
<u>economic profit</u><u>:</u>
842000-452000-301000-48000-38000 = 3,000
<u>as an accountant economic profit</u><u>:</u>
48000+38000-89000
= -3000
so he should stay in the piano business so that economic profit would be maximized.
Answer:
Increase the consumption of product Y and decrease the consumption of product X.
Explanation:
Utility-maximizing rule states that a consumer is maximizing its utility at a point where the marginal utility per dollar spent equal for both the products.
Marginal utility per dollar for Product X:

= 2 utils per dollar
Marginal utility per dollar for Product Y:

= 8 utils per dollar
Here, the utility-maximizing rule suggests that this consumer should consume more of product Y and less of product X.