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Q. Zach withdrew $400,000 out of his personal savings account and used it to start his new cookie business. Bank account pays 3 percent interest per year. During first year of his business, Zach sold 6,000 boxes of cookies for $2.50 per box. Also during first year, cookie business made monetary outlays of $9,000. You may assume that re is no opportunity cost to Zach's time. What is economic profit and accounting profit?
Use the economic perpective to explin why someone who isnormally a ligh eater at a standard restaurant may become somewhat of a gullton at a buffet-style restaurant that chares a single price for all you can eat.
Illustrate what is the expected value of your earnings from investing in General Motors stock.
Illustrate what is your conclusion about the claim made by the diet program
Then you inherited a piece of commercial real estate bringing in $12,000 in rent annually.
Describe how changes in the macro environment affect individual firms and industries through the micro economic factors of demand, production, cost and profitability.
A local community voting to raise property taxes to increase school expenditures
What kinds of people are most likely to have their utility reduced by such a law. Why do you think that the government requires such insurance.
Suppose banks keep no excess reserve and no individuals or firms hold on to cash. If someone suddenly discovers $12 million in buried treasure and deposits it in a bank, elucidate what will happen to the money supply if the required reserve is 10 ..
Compute how many acres, hectares each person wold occupy if all U.S. residents.
Illustrate what do economists mean when they say that private goods tend to be produced in the right amounts.
Within two weeks sales had fallen. Using your knowledge of game theory, illustrate what do you think disrupted McDonald's plans.
A competitive firm that is profit maximizing pays a wage. The firm has started marketing its new product.
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