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Mark resigns from his job as a head chef in a famous restaurant where he earned $70,000 per year to open his own restaurant last year. He withdrew $50,000 of his own savings that had been earning 4% interest and borrowed another $100,000 from the bank at a rate of 5%. As the restaurant space he was leasing had no separate office, Mark converted his basement apartment into office space. He had previously rented the apartment to a student for $300/month. Also, Mark estimates this entrepreneurial talent or forgone entrepreneurial income to be $10,000 a year. In his first year of business, he earned $600,000 and had the following expenses: Utilities, $10,000; employee wages, $100,000, materials, $300,000, and rent, $25,000. What is the accounting and economic profit? Show work
a random sample of 10 economists produced the following forecasts forpercentage growth in real domestic
A laser-based system installed for B = $150,000 three years ago can be sold for SP = $180,000 now. Based on 5-year MACRS recovery, BV3 = $43,200. GI for year is $800,000 and annual operating expenses average $50,000. Decide TI and taxes if Te = 34 pe..
determine the ethical implications of businesses polluting in a third world country. explain your rationale. 2. suggest
If interest rates, opportunity costs of investment, happened to be the same in both emerging-economy nation and developed countries, what could account for faster upward shifts in the latter group’s planned investment functions?
Suppose men receive $11.20 per our and women receive $8.00 per hour. Moreover, suppose the firms use 81 female person hours and 64 male person hours to produce 144 units of output and the marginal product of labor for men is 27 while the marginal pro..
Suppose the feder reserve adopts a tight money policy to slow the economy down because of its concern about potentially rising inflation inflation. Show this policy outcome graphically using the IS-LM model assuming people believe the new policy is t..
Herbert spends all $50 of hes paycheck on food and shelter which each cost $5 per unit what is the equation of hes budjet line ? Sketh the budjet line and two possiable indifference curves
what effect do government intervention taxation and regulations have on economic behavior? explain. what are
Consider a long-term debt you currently own (e.g., a mortgage or student loan) and discuss how you would take present value into account when deciding whether you should retire that debt ahead of schedule. Explain your rationale.
When trying to assess differences in her customers, Claire - the owner of Claire's Rose Boutique - noticed a difference in the typical demand of her female versus her male customers
Your are the chief economic advisor to the King of Terra. The king has observed that while the price of energy has increased 20 percent over the past five years, consumers have actually increased their energy consumption by 10 percent over the sam..
Draw a supply and demand graph to assist in explaining the increase in the price of chain saws after Hurricane Andrew.
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