Ellie has been working for an engineering firm and earning an annual salary of $80,000 . She decides to open her own engineering business. Her annual expenses will include $15,000 for office rent, $3,000 for equipment rental, $1,000 for supplies, $1,200 for utilities, and a $35,000 salary for a secretary/bookkeeper. Ellie will cover her start-up expenses by cashing in a $20,000 certificate of
deposit on which she was earning annual interest of $500 . Ellie's annual economic costs will equal
a. $55,200.
b. $75,200.
c. $80,500.
d. $135,700.
d
You might also like to view...
The price elasticity of demand for labor will be smaller, the
A) smaller is the price elasticity of demand for the final product. B) easier it is to employ substitute inputs in production. C) larger is the proportion of wage costs in the total cost of production. D) longer is the time period under examination.
____ is the income actually available to the consumers that determines aggregate demand.
A. Nominal income B. Net domestic product C. Income corrected for depreciation D. Disposable income
The price elasticity of demand is calculated by:
A. the change in price divided by the change in quantity demanded. B. the change in quantity demanded divided by the change in price. C. the percentage change in price divided by the percentage change in quantity demanded. D. the percentage change in quantity demanded divided by the percentage change in price.
Open, competitive output markets ensure that households do not end up with the wrong goods and services.
Answer the following statement true (T) or false (F)