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Grace owns and operates a small pottery firm.Grace hires an assistant at $12,000/year, pays annual rent of $5000 for her shop, and spends $20,000/year on materials. She has $40,000 of her own funds invested in equipment that could earn her $4000/year if invested in the stock market. She has been offered $20,000/year to work as a potter for one of her competitors.Grace would lose $3000/year in government assistance if she stays in business.Total annual revenue from pottery sales is $72,000. Calculate the accounting profit and the economic profit for Grace’s pottery business.Should Grace continue operating her own business? Why or why not?
Integration of E-commerce and ERP Systems with other ICT (information and communication technologies) to create value for customers and shareholders.
Almost one-fifth of the deaths in children under five in Africa are from: The bulk of world trade originates and is exchanged between _____ economies. Health-adjusted life expectancy (HALE) reduces life expectancy by years spent: Which education indi..
The story of entitlements such as health care and welfare payments to the elderly in the US is pretty ----. This is partly because these payments form---part of the government budget and they are----
“Equal pay for work of equal value” is a commonly held goal, but “equal value” is hard to define. What would be the consequences of legislation that enforces equal pay for what turns out to be work of unequal value?
Suppose you have $440 to spend on either concert tickets or CDs. Concert tickets cost $11 each, and CDs cost $8 each. Let T = the number of concert tickets, and C= the number of CDs. Write the equation of the consumers budget constraint
if korean exports to the united states decline by 15 billion by how much will cumulative korean spending drop if their
Mcdonalds spends millions of dollars each year on legal protection of it's brand name, thereby preventing any unathorzed use of it. Explain what information this conveys to you as a customer about the quality of Mcdonalds products
Illustrate the effects on a consumer of a subsidy on education using indifference curves and budget constraints. Also illustrate the effects on a consumer's purchases of education of an unrestricted cash payment to her. (Hint: Use "education" and "al..
A monopolist firm serves 6 consumers. Each of the consumers only buy one unit of the good. Two consumers buy one unit if the price is lower or equal than $100 and the other four consumers buy one unit if the price is lower or equal than $10. The firm..
Suppose you have an asset that costs $11 in time period zero and has an IRR of 18%. With a retained earning rate of 5% on your remaining $7, what is the highest loan rate that would support investing in this asset? Calculate.
You are the manager of a firm that receives revenues of $60,000 per year from product X and $70,000 per year from product Y. The own price elasticity of demand for product X is -2.5, and the cross-price elasticity of demand between product Y and X is..
Out of fears that the money supply is too large, the Federal Reserve has decided to decrease the money supply. How could the Federal Reserve accomplish this?
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