Homework Answers
1.
Accounting profit = $2000 and zero economic profit
Reason:
Cost each month = 400+150+450 = 1000
Total revenue = 3000
Accounting profit = TR – TC = 3000 – 1000 = 2000
Opportunity cost = wages foregone = 2000
Economic profit = Accounting profit – Opportunity cost
Economic profit = 2000 – 2000
Economic profit = 0
2.
Both statements 1 and 2 are true
Reason: As wages rise, substation effect leads to an increase in hours worked while income effect leads to an increase in leisure
3.
ATC2
Reason: As firm having ATC2 has lowest ATC at Q = 400
Add Answer to:
David owns and operates a small bicycle shop. The cost of operating the shop each month...
David and Kate can put aside $1,500 as savings each month. They have managed to save...
David and Kate can put aside $1,500 as savings each month. They have managed to save $ 50,000 so far during their working lives and this money is earning 3.15% annual interest, compounded monthly, in a bank fixed deposit. As self - employed they have no KiwiSaver funds. David and Kate are renting at present but wish to purchase a home. Their goal is to put down a 20% deposit on a $ 700,000 home in three years’ time. They...
1. Ralph owns a small pizza restaurant, where he works full-time in the kitchen. His total revenue last year was $100,000, and his rent was $3,000 per month. He pays his one employee $2,000 per month,...
1. Ralph owns a small pizza restaurant, where he works full-time in the kitchen. His total revenue last year was $100,000, and his rent was $3,000 per month. He pays his one employee $2,000 per month, and the cost of ingredients and overhead averages $500 per month. Ralph could earn $35,000 per year as the manager of a competing pizza restaurant nearby. His total explicit costs for the year were a. $24,000. b. $66,000. c. $72,000. d. $60,000. e. $6,000....
Managers, Profits, and Markets 1. For each one of the costs below, explain whether the...
Managers, Profits, and Markets 1. For each one of the costs below, explain whether the resource cost is explicit or implicit, and give the annual opportunity cost for each one. Assume the owner of the business can invest money and earn 4.5 percent annually. a. The company’s delivery truck, which cost $150,000 four years ago, is now worth $120,000. The company has paid off its bank loan used to purchase the truck and now owns the delivery truck. b....
These are all true or false 1. Planning is a part of each business activity (Operating,...
These are all true or false 1. Planning is a part of each business activity (Operating, investing, and financing), and gives each activity meaning and focus. 2. General accounting principles stem from long-used accounting practices. 3. The fraud triangle asserts that the three factors that must exist for a person to commit fraud are opportunity, pressure, and rationalization. 4. The business entity principle means that accounting information reflects a presumption that the business will continue operating instead of being closed...
1. NAME and LABEL each curve S/cu. ft a. answer: marginal cost curve for water MCsater...
1. NAME and LABEL each curve S/cu. ft a. answer: marginal cost curve for water MCsater S10/cubic foot b. C. d. 2 Determine the following and EXPLAIN WHY; S5/cubic foot a equilibrium quantity of water the fim will sell -100m cu.ft because on that unit of water sold (100mth cn.ft.) MR MC b. equilibrium price the firm will charge for water because: c. total revenue earned by the firm at equilibrium because: quantity of water, d. total costs to the...
Greg’s Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the...
Greg’s Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Greg's Bicycle Shop uses a periodic inventory system. Date Transactions Units Cost per Unit Total Cost March 1 Beginning inventory 20 $200 $ 4,000 March 5 Sale ($300 each) 15 March 9 Purchase 10 220 2,200 March 17 Sale ($350 each) 8 March 22 Purchase 10 230 2,300 March 27 Sale ($375...
The use of internal controls provides guaranteed protection against losses due to operating activities. * 2...
The use of internal controls provides guaranteed protection against losses due to operating activities. * 2 points O True False 2 points Factors that cause the bank statement balance of a chequing account to be different from the business chequing account balance include: outstanding cheques, deposits in transit, deductions for bank fees, additions for interest, and errors. * True O False TechCom customer RDA Electronics paid off an $8,300 balance on its account receivable. TechCom should record the transaction as...
The use of internal controls provides guaranteed protection against losses due to operating activities. True False...
The use of internal controls provides guaranteed protection against losses due to operating activities. True False Factors that cause the bank statement balance of a chgawineaccount to be different from the business cRRHeaccount balance include: outstanding cheques, deposits in transit, deductions for bank fees, additions for interest, and errors. True False TechCom customer RDA Electronics paid off an $8,300 balance on its account receivable. TechCom should record the transaction as a debit to Accounts Receivable-RDA Electronics and a credit to...
Q1. Sarah has decided to spend always $200 on clothing per month. Which one of the...
Q1. Sarah has decided to spend always $200 on clothing
per month. Which one of the statements below is true?
A. Sarah’s price elasticity of demand is one because she is
maintaining her clothing expenditures as a constant fraction of the
price.
B. Sarah’s income elasticity of demand is equal to zero because her
clothing expenditure does not depend on the price.
C. Sarah’s income elasticity of demand is infinite because she is
willing to spend a huge amount of...
Cash flow statements are the most complicated of the statements small businesses must create, but they...
Cash flow statements are the most complicated of the statements
small businesses must create, but they are very important to help
identify if and when a firm may need a loan.
You need to do a cash flow forecast for Viggio for the
next six months
From this cash flow see if Viggio may need to reuse the
line of credit that the bank has set up for him.
If he does need to use it, how much of it...
1. NAME and LABEL each curve S/cu. ft a. answer: marginal cost curve for water MCsater S10/cubic foot b. C. d. 2 Determine the following and EXPLAIN WHY; S5/cubic foot a equilibrium quantity of water the fim will sell -100m cu.ft because on that unit of water sold (100mth cn.ft.) MR MC b. equilibrium price the firm will charge for water because: c. total revenue earned by the firm at equilibrium because: quantity of water, d. total costs to the...
The use of internal controls provides guaranteed protection against losses due to operating activities. * 2 points O True False 2 points Factors that cause the bank statement balance of a chequing account to be different from the business chequing account balance include: outstanding cheques, deposits in transit, deductions for bank fees, additions for interest, and errors. * True O False TechCom customer RDA Electronics paid off an $8,300 balance on its account receivable. TechCom should record the transaction as...
The use of internal controls provides guaranteed protection against losses due to operating activities. True False Factors that cause the bank statement balance of a chgawineaccount to be different from the business cRRHeaccount balance include: outstanding cheques, deposits in transit, deductions for bank fees, additions for interest, and errors. True False TechCom customer RDA Electronics paid off an $8,300 balance on its account receivable. TechCom should record the transaction as a debit to Accounts Receivable-RDA Electronics and a credit to...
Q1. Sarah has decided to spend always $200 on clothing
per month. Which one of the statements below is true?
A. Sarah’s price elasticity of demand is one because she is
maintaining her clothing expenditures as a constant fraction of the
price.
B. Sarah’s income elasticity of demand is equal to zero because her
clothing expenditure does not depend on the price.
C. Sarah’s income elasticity of demand is infinite because she is
willing to spend a huge amount of...
Cash flow statements are the most complicated of the statements
small businesses must create, but they are very important to help
identify if and when a firm may need a loan.
You need to do a cash flow forecast for Viggio for the
next six months
From this cash flow see if Viggio may need to reuse the
line of credit that the bank has set up for him.
If he does need to use it, how much of it...
Most questions answered within 3 hours.
-
1a) According to the ideal gas law, _______________.
a. a gas has infinite volume at absolute...
asked 57 minutes ago -
Oakdale Fashions, Inc. had $245,000 in 2018 taxable income.
Using the tax schedule in Table 2.3...
asked 1 hour ago -
The marketing class at CSUS had an average score of 150. An
educational analyst determined that...
asked 2 hours ago -
Justin Case has purchased a $250 000 home by putting 20 % down
and taking out...
asked 2 hours ago -
1. In a labor market, marginal cost for a firm is
____________.
a. recruiting cost
b....
asked 3 hours ago -
On January 1, 2019, ABC Company issued $60,000,000 of 20-year,
10.5% bonds when the market rate...
asked 3 hours ago -
39.4% of US homes continue to use a landline in addition to cell
phone service. 3...
asked 4 hours ago -
Starting with benzene, synthesize 1-phenyl-1-butyne.
Show intermediates and reagents.
asked 5 hours ago -
Create a 32-run crossed array design with six control factors
and two noise factors such that...
asked 6 hours ago -
A 500g sample of sand from source A has the following amounts
retained on each sieve....
asked 6 hours ago -
In
your own words, please explain the essay by John Keynes wrote "The
End of Laissez...
asked 6 hours ago -
How are the matrix and pixels related? Why are smaller
pixels better for diagnostic quality?
asked 6 hours ago