The following is cost information for the Creamy Crisp Donut Company: Entrepreneur's potential earnings as a salaried worker = $50,000 Annual lease on building = $22,000 Annual revenue from operations = $380,000 Payments to workers = $120,000
Utilities (electricity, water, disposal) costs = $8,000 Value of entrepreneur's talent in the next best entrepreneurial activity = $80,000 Entrepreneur's forgone interest on personal funds used to finance the business = $6,000 Refer to the data. Creamy Crisp's total economic costs are:
A. $286,000.
B. $150,000.
C. $94,000.
D. $156,000.
Answer: A
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Investment banks differ from commercial banks in the fact that
A) investment banks work only with wealthy customers while commercial banks work only with private firms. B) commercial banks sell stocks on behalf of their customers while investment banks just finance loans. C) commercial banks issue stocks and bonds while investment banks do not. D) investment banks help other financial institutions and governments engage in financial markets while commercial banks work with individuals. E) commercial banks service the needs of local governments while investment banks work with the federal government.
Explain how the Fed's response to inflation works its way through the economy to ultimately affecting real GDP and the price level
What will be an ideal response?
Which of the following is an assumption of the Lewis two-sector model?
a. surplus labor in the rural sector b. high unemployment in the urban modern sector c. rising real urban wages d. rising marginal product of labor in the rural sector
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher