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a) A key difference between accountants and economists is their different treatment of the cost of capital. Does this cause an accountants estimate of total costs to be higher or lower than an economists estimate? Explain.
b) Kelly is a clerk and she earns $75,000 per annum. She thinks that her salary is too low, so she resigns and starts her own cake shop by using her savings of $100,000. The savings earn interest at 5% per annum. After one year, she earns an accounting profit of $80,000. What is Kelly’s economic profit? Explain and show your calculation.
c) Based on your answer in (b), is Kelly better off after running her own shop? Briefly explain.
Suppose i = 3%. Find the value one month before the first payment of a level annuity-due paying $200 at the beginning of each month for five years.
Increasing the minimum wage will result in a decrease in employment for workers who now earn less than the new minimum wage.
Illustrate what happen if her actual disposable income is $16,000, her level of consumption or saving will be.
From a purly business standpoint, do any issues arise from contracting with an international- based versus US based BPO service Firm?
q1. why may vertically integrated delivery systems lead to lower productions costs? why may these systems lead to
Locate recent articles in the New York Times or Wall Street Journal in which economists are quoted using positive and normative statements.
The size of the labor force in a community is 500, and 400 of these folks are gainfully employed. In this community, 100 people over the age of 16 do not have a job.
Kathleen likes avocado also crab dip. After eating avocado also crab dip with four crackers, she switches to cheese with crackers.
Jim Bradley is the director of the Bradley bakery. He has collected data on his store for the past year.
Why is the money multiplier considered to be a potential multiplier rather than an indication of exactly how much multiplication should be expected?
Do you think the U.S. Post Office should be protected from competition What about a pharmaceutical company that has just spent millions to develop a life-saving drug
Explain how low must a quota be in effect to have an impact. Using a demand-and-supply diagram, illustrate and explain the net welfare loss from imposing such a quota.
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