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An entrepreneur is deciding whether or not to open up a new gym. He currently makes $50,000 per year as a personal trainer and will have to give up this job if he opens the gym. If he opens the gym, it will cost $100,000 per year in rent and other operating expenses. He expects to earn a revenue of $180,000 per year if he opens the gym. Which of the following statements is true regarding the entrepreneur’s annual expected profit? The accounting profit is $100,000 and economic profit is $50,000 The accounting profit is $30,000 and economic profit is $80,000 The accounting profit is $80,000 and economic profit is $30,000 The accounting profit is $80,000 and economic profit is $130,000
Why should a government be concerned with the pricing of products that a company transfers to an affiliate in another country? Please explain in terms of taxation and exchange rates.
Demand and Supply". Use the linear demand and supply curves shown in the figure to answer the following questions: The economic value of the 10,000th unit is $_______, and the minimum price producers will accept to produce this unit is $ ________.
q.due to the global economic slowdown we were benefiting from relatively low oil prices. but because of the instability
Explain how much change in the number of units sold can the company afford and still be no worse off.
An important point is about customer expectations. What customer expectations are there with respect to What, When and By whom in a project? What would you use to determine if the project was successful? What would a customer use?
What type of economic flow would be illustrated b the purchase of a Mexican candy-making factory by a US company.
Households deposit $5,000 in currency into the bank that is added to reserves. Illustrate what level of excess reserves does the bank now have.
Illustrate what output does the low point of ATC occur and illustrate what is the ATC at that output. Explain how your calculations.
Explain what would happen to equilibrium price and quantity in the market for Pepsi if the following occurred (be sure to indicate WHY it happens as well)
You are the director of a Washington, D.C., think tank focusing on tax and economic policy issues. You were recently (and informally) contacted by staff of the Congressional Joint Committee on Taxation to weigh in on a number of issues currently unde..
Home and Foreign both produce cars and food using labor and capital. In each country, labor and capital are both freely mobile across industries. It takes 5 units of labor and 3 units of capital to produce 1 unit of food, and 4 units of labor and 4 u..
The electric power industry is held up in the article as an example of a natural monopoly. Brainstorm other examples that can be readily identified in the present market economy.
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