thank you so much In 2014, Karl taught music and earned $30,000 On January 1, 20
ID: 1129281 • Letter: T
Question
thank you so much
In 2014, Karl taught music and earned $30,000 On January 1, 2015, he quit teaching and started a home decorating business. The information on the right describes his first year in the new business Karl's explicit costs are A. $8,500: $75,700 0 B. $38,500 $79,500 C. $75,700:$8,500 O D. $76,700; $4,500 OE. $4,500, $76,700 Karl's economic profit in the first year is Question Facts In 2014, Karl taught music and earned S30,000 In 2015 i He stopped renting out his basement for and his implicit costs are . S5,500 a year and used it as his business office instead ii He paid $2,000 for a set of sample books and $2,500 for a booth at the Home Showw i He earned interest at 5 percent a year on his savings account balance He took $4,000 from his savings account to buy a sewing machine dollars O A. 40,000 OB. -11.700 °C, 23,800 O D.-16,200 O E. 60,500 v At the end of 2015, Karl could have sold his v He received a total revenue of $65,000 from his vi Nomal profit is $40000 a year sewing machine for S3,000 home decorating business.Explanation / Answer
1) Explicit cost = 2000 + 2500 + 4000 = $ 8,500
Implicit cost = 30,000 + 5500 + 5% of 4000 + 40,000 = 30,000 + 5500 + 200 + 40,000 = 75,700
Answer is a) 8,500 ; 75,700
2) MP of 3rd student = TP of 3rd student - TP of 2nd student = 9 - 5 = 4 subscriptions
AP of 3 students = TP of 3 students/2 = 9/3 = 3 subscriptions a week
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.