Question

explain

The city of New Orleans has 200 advertising companies, 199 of which employ designers of normal ability at a salary of $80,000 a year. The firms that employ designers of normal ability each collect $500,000 in revenue a year, which is just enough to ensure that each earns exactly a normal profit. However, the 200th company employs Janus Jacobs, an unusually talented designer. Because of Jacobs's talent, this company collects $1,500,000 in revenue a year a. How much will Jacobs earn? Instruction: Enter your response as an integer value. per year What proportion of his annual salary will be economic rent? nstruction: Enter your response as a percentage rounded to the nearest whole number. b. Will the advertising company for which Jacobs works be able to eam an economic profit? O No

Answer 1