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A and B are painters and have the exact same cost structures except that A paints in a house he owns but that he could rent out for $4,000/year, while B paints in a house that he rents from Ithaca Realty for $4,000/year. Both A and B would become photographers and earn salaries of $50,000/year if they quit painting for themselves. Assume that the painting business is a perfectly competitive industry. Which one of the following is true?
A. A earns more accounting profit and more economic profit than B does.
B. A earns the same accounting profit and more economic profit as B does.
C. A earns the same accounting profit and the same economic profit as B does.
D. A earns more accounting profit and the same economic profit as B does.
E. A earns less accounting profit and less economic profit than B does.
Volusia County has two alternatives for traffic light in an excluded area. Alternative A is to install an electrical powered traffic light, while alternative B is to install solar powered traffic light. The initial cost, the annual operation costs ar..
A firm has a monopoly on a new type of gaming console. The market demand is given by P=307.4-0.003*Q and thus marginal revenue is MR=307.4-0.006*Q. The monopolist's marginal cost is MC=4.3+0.001*Q. Calculate the profit-maximizing production quantity?
What are problems associated with implementing JIT purchasing. What are some of expectations of suppliers.
illustrate what would take place in the US marketplace for loan able funds. In particular to US interest rate, savings also investment.
Suppose someone stated that the Heckscher-Ohlin model is best-suited for explaining trade between developed countries and developing countries, while newer theories such as those of Linder and Krugman are best-suited for explaining trade among develo..
A person you trust asks you to loan them $2,000 at the end of year 1, $1,000 at the end of year 2, nothing in year 3, and then they will pay you $1,000 in year 4, $2,000 in year 5, and $3,000 in year 6. They note that you will pay out a total of $3,0..
How increasing your human capital may influence your ability to accept change, and readiness to learn new skills and get new jobs. Apply the effects of human capital and technological changes
q.this has 3 parts so id like it to use my 3 questions if it can be counted as 1 please.alchem l is the price leader in
You purchased a bounce house one year ago in which you were required to invest $6,500. One year passes. You decide to sell the bounce house. During the year you were paid $4,000 in profits. If you sell the bounce house today, you could receive $6,100..
If the firm needs the service of these machines for an indefinite period also no technology improvement is expected in future machines.
Use Appendix A at the back of the text to show the compound annual rate of growth in earnings (n=4).
How does Ticketmaster's "dynamic pricing" affect ticket sales, total revenue and profit? Does Ticketmaster provide a valuable service, or is it a necessary evil to purchasers of event tickets?
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