Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Jamie is considering leaving her current job, which pays $75,000 per year, to start a new company that develops applications for smart phones. Based on market research, she can sell about 50,000 units during the first year at a price of $4 per unit. With annual overhead costs and operating expenses amounting to $145,000, Jamie expects a profit margin of 20 percent. This margin is 5 percent larger than that of her largest competitor, Apps, Inc.
a. If Jamie decides to embark on her new venture, what will her accounting costs be during the first year of operation? Her implicit costs? Her opportunity costs?
Accounting costs: $
Implicit costs: $
Opportunity costs: $
b. Suppose that Jamie’s estimated selling price is lower than originally projected during the first year. How much revenue would she need in order to earn positive accounting profits? Positive economic profits?
Revenue needed to earn positive accounting profits: $
Revenue needed to earn positive economic profits: $
How would you evaluate monetary policy and fiscal policy today? Is monetary policy contradictory with fiscal policy? Why or Why not? Support your analysis with examples.
Which is more economical, a plant with a payroll of $400 a week, with $100 of overhead, and with an output of 100 units per week, or a plant with a payroll of $80,000 a week, an overhead of $100,000 a week, and an output of 50,000 units per week? How..
If one chooses to take on debt, they can do it by loans that have (1) annual payments on the principal of the loan (2) interest payments each year with principal paid at the end or (3) no interest payments until the end when interest and principal is..
Suppose a firm employs capital (K) and labor (L) to produce a product with the following production function: Q = min(K, L), where Q is the quantity produced and min(K, L) is the minimum (i.e., smallest) value of K or L. For example, if K = 20 and L ..
Suppose that a company currently employs 2,000 workers and produces 5 million units of output per month. Labor is its only variable?input, and the company pays each worker the same monthly wage. The?company’s current total variable costs equal ?$5 mi..
A plastics company is considering two injection molding processes. Process X will have a first cost of $600,000, annual costs of $200,000, and a salvage value of $100,000 after 5 years. Process Y will have a first cost of $800,000, annual costs of $1..
Trade sanctions imposed on Iraq that limited Iraq/s production of oil after the 1990 Gulf War on the oil market are best shown graphically with a price ceiling below equilibrium price. False. Why?
Define strategic competitiveness and above-average returns. What is the relationship between strategic competitiveness and returns on investment? Explain why it is important for organizations to analyze and understand the external environment. Descri..
(Assume a two good world) Explain why it is that we allow for individuals to have different preferences, but make the claim that when acting rationally, all individuals will choose a consumption bundle where they have the same marginal rate of substi..
A savings bank offers $1000 certificates deposit. Each certificate can be redeemed for $2000 after 8.5 years. What are (a) the nominal, (b) the effective, annual interest rate, if the interest is compounded continuously?
Suppose that a firm’s long-run average total costs of producing an individual income tax return is $75 when it produces 1,000 returns and $75 when it produces 1,200 returns. For this range of output, the firm is experiencing a. constant returns to sc..
Explain how do you calculate the cost index using the nominal GDP to get the real GDP in billions
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd