Refer to Scenario 9.3 below to answer the question(s) that follow. SCENARIO 9.3: Investors put up $520,000 to construct a building and purchase all equipment for a new restaurant. The investors expect to earn a minimum return of 10 per cent on their investment. The restaurant is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly). Included in the fixed costs is the 10% return to the investors and $1,000 per week in other fixed costs. Variable costs include $1,000 in weekly wages and $600 per week for materials, electricity, etc. The restaurant charges $5 on average per meal. Refer to Scenario 9.3. Total cost per week is
A. $1,000.
B. $1,600.
C. $2,000.
D. $3,600.
Answer: D
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Assume Brad worked as a contractor for a year and had revenues of $120,000 and explicit cost of $70,000 . If he could have been paid $80,000 working for a computer company, his accounting profit as a contractor was ____ and his economic profit was ____
a. $50,000 . -$30,000 b. $10,000 . $50,000 c. $40,000 . $50,000 d. $50,000 . $40,000
How much is the percentage of income received by the lowest quintile on line R?
In the second quarter of 1995, the following values were observed: real GDP = 4,359.3 billion; GDP deflator = 325.1; and M1 = 989.5. What is the value of velocity?
A. 32.51 B. 24.31 C. 14.32 D. 2.31
Increases in real GDP would overstate the increase in the well-being of a country over time if, over that time period, the
A) average hours worked per week increased. B) amount of pollution decreased. C) price level increased. D) crime rate decreased.