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!
Accounting vs Economic Costs
Suppose you work at Jiffy Lube, where you earn $15,000 per year. Your rich Uncle Walter recently died and left you an inheritance, so you are thinking of starting your own business. The business you wish to pursue will convert existing hybrid Toyota Prius automobiles to plug-in hybrid vehicles. You predict that you can retrofit approximately 100 units during the first year at a selling price of $12,000 per automobile upgraded. Your overhead (fixed) costs are estimated at $500,000, and your operating costs (materials, labor, etc.) are expected to be $1,200 per automobile. Note: Show your work and explain your logic for each of the following questions.
a. What are your first year accounting costs?
b. What are your first year economic costs?
c. What are your first year accounting profits (or losses)?
d. What are your first year economic profits (or losses)?
The law of comparative advantage recommends that countries specialize in those products in which they have a comparative advantage, not an absolute advantage.
Which of the followings tends to occur during recessions Cyclical unemployment tends to fall The stock markets tends to surge (experience a rapid rise in prices) Interest rates tend to fall Gross Domestic Product rises Consumer ..
Throughout this course we have discussed the 'agency problem' - i.e., when the interests of owners and managers are not properly aligned.
Finding the short run and long run profit maximizing price - quantity and number of firms in industry.
Last year, Pat and Chris occupied separate apartments. Each consumed 400 gallons of hot water monthly.
Indicate whether each of the following statements is true, false, or uncertain, and explain your answer.
Short term Treasury bills [3 and 6 month] have current annual rates of interest around 0.5%. Use that info plus your best forecast of inflation to calculate the real rate of interest on those bills.
What is the expected value of the company in one year, with and without expansion? Would the company's stockholders be better off with or without expansion? Explain. What is the expected value of the company's debt in one year, with or without expa..
Obtain the market clearing price and quantity. Under the assumption of profit and maximization , how much output should the representative firm produce?
A recent McKinsey report concluded that 'If a price war occurs in a specific market-Critically examine this statement.
Suppose planned investment falls by 100. Graphically illustrate using the AE-Y graph the effects of this reduction in planned investment on the economy. Also calculate the new equilibrium level of income.
Use the following Information on a hypothetical short-run production function to answer questions a-c. Calculate the marginal and average variable product of each unit of labour input.
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