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Accounting costs, profits, Economics profit
(A). A potential entrepreneur is trying to decide whether to open a new health spa. She presently makes $35,000 per year as an aerobics instructor and will have to give up this job if she opens the new spa. If she chooses to open spa, it will cost her $200,000 per year in rent and other operating expenses.1. What are her accounting costs?2. What are her opportunity costs?3. How much would she need to make in revenues to earn positive accounting profits? Positive economic profit?4. If a firm makes positive economic profit it means that the firm earns normal profit. True or false? Comment.
(B). 4. Production function specifies the maximum output that can be produced given varying degrees of technological progress. True or false, explain.
Use the data below to find out the growth of income per person (over the entire period, not an annual basis) between the two years listed.
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The International Monetary Fund IMF supply assistance to nation experiencing economic woes.
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Illustrate what would happen if CPI decided to raise prices unilaterally in this toothpaste market.
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Do analysis of the economic and ethical implications of the article event.
In this case there will be a cash outlay of $550,000 at the end of the first yr followed by a cash payment of $650,000 at the end of the second year.
Barramundi Inc. stock is currently selling at $40 per share (its equilibrium price) provide that the risk free interest rate is 8% and the equilibrium risk premium on the market portfolio is 6%.
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