Review problem on rental expenses on the budget statement

Assignment Help Microeconomics
Reference no: EM132122926

Question: Mary has forgotten to put rental expenses on the budget statement this month. Comment on the appropriateness of her action under each of the following scenarios:

i) Mary owns the shop , Mary budgets a rental expense of 0.

ii) Mary rents the shop and he budgets a rental expense of $4000. The rental contract, signed in late 2012 and it last for 3 years,Peter cannot terminate the contract nor sublet the shop to other people during this 3 years . The monthly rental is $4000 and the rent for this month has not been paid yet when the budget statement above was drawn up.

iii) Mary owns the shop and she budgets a rental expense of $5000 as the shop is mortgaged to the bank and her monthly mortgage repayment is $5000 per month and it last for 6 years.

Reference no: EM132122926

Questions Cloud

What happens to the incomes of producers in illinois : In the market for corn the supply curve is QS = -2 + P and the demand curve is QD = 10 - P. Solve these for equilibrium price and quantity.
Does the given statement make sense : In June of 2009 the U.S. House of Representatives passed H.R. 2454, which introduced a "cap-and-trade" system to reduce carbon emissions associated.
Review problem on rent controls : Rent controls that are set below market equilibrium prices can help ensure that poorer people will be able to obtain living space on reasonable terms.
Do you believe that the decision will harm or help : Do you believe that this decision will harm or help the Australian economy in general? Use at least 5 economic theories you have studied in this unit.
Review problem on rental expenses on the budget statement : Mary has forgotten to put rental expenses on the budget statement this month. Comment on the appropriateness of her action under each of the following.
Summarize the effects and discuss the trends : In 1980, automobile manufacturers in the United States asserted that import quotas be instituted on foreign-produced vehicles marketed in the United States.
How would the individual indifference curves look : Suppose that no amount of other goods can compensate for a loss in health. How would the individual's indifference curves look? Is this a reasonable assumption.
What is minimum range of sample average volume : Hypothesis Testing: z Tests. Olae Oil Beauty Lotion is a skin moisturizing product that contains rich oils, blended especially for overly dry or neglected skin.
What will the level of advertising be : Now let the firm also choose its optimal level of advertising expenditure. In this situation, what output level will be chosen? What price will this yield?

Reviews

Write a Review

Microeconomics Questions & Answers

  What is the price that leads to the highest level of profits

What is the price that leads to the highest level of profits for this firm? Show the area on the graph that represents the above normal profits earned at the profit maximizing price output combination.

  Produce extremely shaped indifference curves

We know that indifferent curves can help people make decisions when choosing between various goods, and when choosing among work and leisure. Discuss other decisions that indifference curves may be helpful in analyzing. Can you think of circumstances..

  Change in demand versus a change in quantity demanded

What is the difference between a change in demand versus a change in quantity demanded? A change in supply versus a change in quantity supplied? Why is it so important to differentiate between these similar-sounding terms?

  Demonstrate an understanding of marketing management

Upon successful Completion of this course, you should be able to demonstrate an understanding of marketing management and its complexities such that you can:

  What is an instrumental variable

What is an instrumental variable and Angrist and Krueger use quarter of birth as an instrument for education and explain why quarter of birth may affect education

  Why labor may exhibit a cobweb-shaped path to equilibrium

Explain and show graphically why a firm with monopoly power hires its output in a competitive market power hires less labor than a firm.

  What is the relationship between income and exports

What is the relationship between income and exports?

  What are the pros and cons of democratic principles

At the time of the drafting of the Arizona Constitution, the Progressive Party and Movement was very influential in American politics.

  Year real gdp population

Use the following table to work out in which year the U.S. standard of living (i) increase and (ii) decreases. Explain your answer. Year Real GDP Population

  Why julie provides some time for leisure

Julie is getting ready for final exams. She has three exams during the first three days of the exam period. To prepare, she has outlined a schedule that includes reviewing for her first exam on one day, her next exam on the following day, and her ..

  A pharmaceutical company has hired you to perform an

a pharmaceutical company has hired you to perform an economic analysis on a currently ongoing project. experts from the

  An effective screening technique

Which of the following is an example of an effective screening technique? A A car maker advertising the high quality of their car

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd