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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
Georgia Mills Company (GMC) purchased a milling machine, which it intends to use for the next five years, for $180,000. This machine is expected to save GMC $35,000 during the first operating year. Assuming that GMC would operate the machine for an a..
All Open University Malaysia (OUM) Students are identical and they are all indifferent between attending the OUM and their next best alternative. Students eat are the student union.
Why people at buffet s put more on their plates and eat more the greater the variety of items they have to select from.
What is the equation for the AS curve. What restrictions on the parameters do we need to ensure that AS curve has a positive and nite slope.
Over the Christmas Break, you are hired by Apple to help make the new iPad. Show completely labeled graph showing the initial equilibrium wage and quantity for the iPad labor market.
what should you do when the manager of a perfectly competitive firm whose short run cost is TC = 100 + 160Q + 3Q2. If the market price is $196.
“Dams ‘R’ Us” operates a major hydropower dam on the Klamath River in Oregon. In the event of dam failure, there would be major damages to local communities. The company can reduce the probability of failure through proper maintenance of the facility..
Question Douglas and Dena paid the following amounts of interest during 2010: Calculate the amount of their allowable deduction for investment interest for 2010. Calculate the amount of Douglas and Dena's total allowable deduction for interest for 20..
Consider three alternative ways of helping poor people get housing: government-subsidized housing costing $6,000 per year, a housing voucher worth $6,000 per year toward rent on an apartment or a house, or $6,000 per year in cash. Which would you pre..
Elucidate how much will the government spend in total. Elucidate how much does producer surplus increase.
What is the expected value and standard deviation of the safest investment strategy you can make by this means. What is the highest expected value you can achieve.
Why would you expect the velocity of circulation of a monetary aggregate such as M1 or M2 to rise during periods of high interest rates and to decline during periods of low interest rates?
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