Answer: Economic profit covers implicit costs as well.
Explanation:
Economic profit and Accounting profits are two different things. Economic profit accounts for both explicit costs (operating costs) and implicit costs (opportunity costs) while Accounting profit accounts for only explicit costs.
When economic profit is zero therefore, it means that the firm is still covering the implicit costs so they will not be enticed to divest because their opportunity costs are being taken care.
It would therefore be wise to stay invested as this shows that this alternative is the best out of the other alternatives.
Answer:
1. a GENERAL partner
2. a LIMITED partner
Explanation:
A GENERAL partner has responsibility or liability for losses beyond their investment. They are bound up to the extent of their personal assets incase the partnership is insolvent. They are also responsible in the management and decision-making process in the operation of the partnership. A LIMITED partner on the other hand is only liable in the partnership’s losses up to the extent of his investment in case of partnership’s insolvency. But a limited partner should NOT participate in the management and decision-making process of the operation in the partnership for him to be not liable up to the extent of his personal asset. A limited partner should also be recorded in the articles of the partnership as “LIMITED PARTNER”, otherwise he is liable as general partner.
Answer:
3.22%
Explanation:
Standard Deviation is the quantity that shows how much a each element of a group differs from the mean of the group on average.
Standard Deviation of the PG&E's monthly return is 3.22%. All the calculations and workings are done in an MS Excel file, which is attached with this answer, please find it.
Explanation:
For continuous compounding, we use the following formula
<u>Scenario 1 : </u>
FV = $ 90
N = 2 years
I = 6%
PV= ?
PV = $ 79.82
<u>Scenario 2:</u>
PV = $ 75.17
<u>Scenario 3:</u>
PV = $ 70.80
Answer:
Yes I would
Explanation:
We have these costs
Variable cost:
Materials = 600 dollars for each of component.
Labour is at a rate of 150 dollars each
For fixed cost depreciation = 300 dollars
Now we have to calculate the average variable cost
Cost of production of 1 pc + labour price of 1
= 600 + 150
AVC = 750
The sales price for each of the 10000 pc = 800 dollars
Now we can see that price p is greater than or equal to avc. 800 >=750
So the I have to accept to produce these pcs at the rate of 800 for 1 pc.
800-750 = 50
50x10000 = $500000 from the sale of the 10000 pcs