Refer to Scenario 9.1 below to answer the question(s) that follow. SCENARIO 9.1: Amy borrowed $20,000 from her parents to open a bagel shop. She pays her parents a 5% yearly return on the money they lent her. Her other yearly fixed costs equal $9,000. Her variable costs equal $30,000. In her first year, Amy sold 40,000 dozen at a price of $1.50 per dozen. Refer to Scenario 9.1. Amy's profit is
A. $0.
B. $20,000.
C. $30,000.
D. $50,000.
Answer: B
You might also like to view...
Suppose a price-taking firm uses a single input - labor - to produce an output x. The production technology has diminishing marginal product of labor throughout. a. On a graph with labor hours on the horizontal and output on the vertical axis, illustrate the production frontier for this firm. b. For a given wage rate w and output price p, illustrate three isoprofit curves corresponding to profit levels ?
What will be an ideal response?
How were countries whose industries competed with Chinese industry affected by a yuan that was pegged to the dollar?
A) Because the yuan was undervalued at the pegged exchange rate, the level of Chinese exports remained higher than they would have been if the exchange rate was allowed to float freely. B) Competitors feared that the declining value of the dollar would continue to make Chinese goods more expensive. C) Because the yuan was overvalued at the pegged exchange rate, competing firms from other countries feared that abandoning the peg would lead to an increase in Chinese exports. D) Because China's population is so large relative to other countries, the pegged exchange rate made the goods of foreign competing firms much less expensive than domestic Chinese goods.
Refer to Table 15.3. Based on the data in the table, the primary budget deficit necessary to make fiscal policy sustainable in Cordelia is ________ of GDP
A) -1.5% B) 0% C) 1.5% D) 14.6%
In the view of human capital theorists, educational institutions are factories that take less productive workers as their raw materials and create more productive workers as output
a. True b. False Indicate whether the statement is true or false