Reference no: EM13192425
You are currently a worker earning $60,000 per year but are considering becoming an entrepreneur. You will not switch unless you earn an accounting profit that is on average at least as great as your current salary. You look into opening a small grocery store. Suppose that the store has annual costs of $150,000 for labor, $40,000 for rent, and $30,000 for equipment. There is one-half probability that revenues will be $200,000 and a one-hald probability that revenues will be $400,000.
a. In the low-revenue situation, what will your accounting profit or loss be? In the high revenue situation?
b. On average, how much do you expect your revenue to be? Your accounting profit? Your economic profit? Will you quit your job and try your hand at being an entrepreneur?
c. Suppose the government imposes a 25-percent tax on accounting profits. This tax is only levied if a firm is earning positive accounting profits. What will your after-tax accounting profit be in the low-revenue case? In the high-revenue case? What will your average after-tax accounting profit be? What about your average after-tax economic profit. Will you now want to quit your job and try your hand at being an entrepreneur?
d. Other things equal, does the imposition of the 25-percent profit tax increase or decrease the supply of entrepreneurship in the economy?
|
Rediculous
: For the payment, if I only used it for 1 day. It still charges for the entire session? Shouldn't they not charge me anything? This is rediculous!
|
|
Nonprofit organizations may seek funding
: What are some different sources from which nonprofit organizations may seek funding? How might you determine whether a source of funding is appropriate for an organization?
|
|
Define a balanced equation for the reaction
: Write a balanced equation for the reaction of 2-octanol and surphuric acid. what products are formed?
|
|
Effect of drinking alcohol on self-consciousness
: In reporting the effect of drinking alcohol on self-consciousness, psychologists would state exactly how they measured self-consciousness. They are providing a( n)
|
|
What will your accounting profit or loss be
: Suppose the government imposes a 25-percent tax on accounting profits. This tax is only levied if a firm is earning positive accounting profits. What will your after-tax accounting profit be in the low-revenue case In the high-revenue case.
|
|
Define what kelvin temperature will the reaction proceed
: At what Kelvin temperature will the reaction proceed 4.50 times faster than it did at 309 K?
|
|
Trace the various media
: Trace the various media that have been used to record sound, from Edison's time at the beginning of the 20th Century to the present. Define what the term 'the studio years' signifies with regard to the film industry. When did it occur, what were some..
|
|
State what is the molarity of an unknown acid
: What is the molarity of an unknown acid if 40.5 ml of the acid can be titrated
|
|
Cruise line operating truly luxurious ships
: You are marketing director for a cruise line operating truly luxurious ships. These have superb service and cuisine. How would you proceed to identify the most promising distributors?
|