A carpenter quits his job at a furniture factory to open his own cabinetmaking business. In his first two years of operation, his sales average $100 000 per year and his operating costs for wood, workshop and tool rental, utilities, and miscellaneous expenses average $70 000 per year. Now his old job at the furniture factory is again available. What is the lowest wage at which he should decide to return to his old job? Why?

Q: QUESTION 1 In the two good specific factor model with diminishing returns to the factors the utility...

A: The correct answer is given in the second step.

Q: Use the midpoint method for calculating all elasticity measures below   Suppose that the price of ...

A: Answer: Given, Short-run data: Percenatge change in price=10%Percenatge change in quantity supplied=...

Q: If the marginal propensity to consume is 0.75. When the world gets into a recession period, country ...

A: Answer: Given, MPC marginal propensity to consume=0.75Change in GDP Fall in net exports=$2 billion L...

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A: Nominal GDP2019= $2,234 Real growth rate= 4.8% Inflation rate= 6.4%

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A: Number of sites requiring protection = N  Therefore , probability of choosing any site by defender o...

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A: Heckscher-Ohlin model The Heckscher-Ohlin model is basically an economic theory that states nations ...

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A: The production function is a model that expressed the relationship between inputs (like labor and ca...

Q: 51. Permanent Income and winning the lottery. Remember to explain the reasoning behind your answers....

A: a. Because of consumption smoothing the consumption will be split across the periods in such a way t...

Q: A tax in a supply and demand model will: O Transfer surplus from the government to consumers. O Tran...

A:

Q: Given a money base of 500 million, RRR of 5% and change in reserves for the banking system of 10 tho...

A: Since you have asked multiple questions, we will solve the first question for you. If you want any s...

Q: The US record-high gas prices previously occurred in July 2008, when the national average price per ...

A: 1.  Given the CPI of 2008 = 219.964 Current CPI = 283.716 Inflation = Current CPI - Previous CPIPrev...

Q: Suppose all firms in a given industry have the same supply curve given by S,(p)p/4. Plot and label t...

A: The supply curve of each firm is given to be: Si(p) =p/4 There are 4 firms in the industry, so the i...

Q: What is the likelihood of government-issued bonds or treasury securities defaulting? * A. Can't say...

A: The answer is - D. Zero

Q: i just need a short answer like an examples please . .. Use an appropriate example from your experi...

A: Accounting profit takes into account only explicit cost while economic profit takes implicit cost as...

Q: 3) If you are the attacker, and you know that the defender is going to choose the best strategy they...

A: Sorry, as per the rules we do not provide handwritten solutions. 3. From part 1 and 2 we know that i...

Q: uppose an individual deposits $4,000 into her chequing account, which eventually leads banks to incr...

A: 1. Given initial deposit = 4000 $ Total increase in cash reserves = 4000 Total loans creation =  460...

Q: Suppose Adam has utility function UA (X1, x2) = xy and Bob has utility function UB (X1, X2) = xx2 To...

A: Given  Adam utility function:  UA(x1,x2)=xy Bob utility function: UB(x1,x2)=x12x2 Initial endowments...

Q: Average Verage Fixed Average Variable Fixed Variable Total Total Margin Output Costs 10 Costs 60 Cos...

A: in the given question only output and total cost are only given, for the remaining parts following f...

Q: what are the causes of economic fluctuati

A: Answer -

Q: Which of the following is true of Advantages of the US implicit Nominal Anchor? Select one: a. The F...

A: Monetary Policy refers to the decisions taken by the central bank of a country to control the money ...

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A: "Since you have asked multiple questions, we will solve the first question for you. If you want any ...

Q: On a short bond paper, do what is indicated in the following ileS. 1. Gven the demand function: Qd =...

A: Qd = 50 - 4P (a) demand schedule: Price Qd 1 46 2 42 3 38 4 34 5 30

Q: Assuming the supply curve for money is perfectly inelastic and the demand curve for money is downwar...

A: (1) A money supply curve is vertical A money demand curve is downward sloping The intersection point...

Q: All of the following have been used in the past as commodity money EXCEPT: O a. Salt. O b. Gold. O c...

A: In the barter system economy, people have used salt, gold, and silver as a medium of exchange or com...

Q: Angel started to work in 2001 with an annual salary of £20,500. She received a £1100 raise each year...

A: Angel started to work in 2001 with an annual salary of £20,500. She received an £1100 raise each yea...

Q: In the specific factor model, with free trade the relative price  of imported goods cannot be  _____...

A: The specific Factor model was originally discussed by Jacob Viner. The name of the model gives its d...

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A: Heckscher-Ohlin-Vanek model states that trade results on account of the different relative prices of...

Q: A company purchased machinery for $ 100,000 on January 1, 2011. The machinery has a useful life of 5...

A: Given: Purchase of machinery=$100000 Useful life=5 year Salvage Value=$10000

Q: Define the risk premium p = č - Cce where č level of consumption from the lottery (7 = E[c]). Consid...

A: Risk premium is the amount which a consumer is willing to pay in order to avoid a risky event .  RP ...

Q: 4. A profit-maximizing firm has cost function C(Q) = 500 + 10Q + 200. 4a.What is the firm's marginal...

A: (4a) C = 500 + 10Q + 20Q2 Differentiate C w.r.t Q to get MC => MC = dC /dQ => MC = 10 + (20)*(...

Q: Why are environmental regulations sometimes considered to be unfair barriers to trade?

A: Trade barriers refer to the restrictions imposed by the governments of various countries on the inte...

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A: To find the relevant answers, we will first convert the demand function into inverse demand function...

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Q: Related to the Economics in Practice on p. 509: In Santa Cruz, red feathers from the Scarlet Honeyea...

A: Money is a commodity that is used to buy goods and services.

Q: If THV Plastics purchases a new building now for Php 1.3 million for its warehouse, what must the bu...

A:

Q: Question 3 Describe what must change for the economy to experience persistent increases in standard ...

A: Answer - "Thank you for submitting the questions.But, we are authorized to solve one question at a t...

Q: What interest will be owed on your bank on a loan of P25,500 at the end of 3 years, 7months and 20 d...

A: Simple interest refers to the money that is paid on principal. Total amount is the sum of interest a...

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A: Insurance Insurance is a contract in which a person or organization gets financial protection or com...

Q: Which of the following is NOT a type of financial market? Select one: a. Money and capital market...

A: Financial market Financial markets include any marketplace where securities are traded, such as the ...

Q: Directions: Solve the following problems. Interpret the results. 1. Christine sells banana banana tu...

A: Given  At price Php 4.00, total sell is 50 pcs and at price Php 6.00, sell is 40 pieces.  Formula fo...

Q: Consider the lottery that assigns a probability T of obtaining a level of consumption CH and a proba...

A: There are two consumption levels for the lottery : cH  , cL  Probability of cH = π Probability of cL...

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A: When talking about the steady state of an economy, it is considered as the point with highest output...

Q: Consider Figure 1 below: Supply 3,000 2,000 1,000 600 Demand 100 300 600 Q Figure 1: Rent Control Su...

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A: Central banking system of the United States of America is called Federal Reserve system(Fed) .It was...

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A: The policies, programs, or activities that lead to an improvement in the life quality, and well-bein...

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Q: According to the excerpt in Source 4, how does President Kennedy use economics to build an argument ...

A: When there are more investments made in research and development then it will help to enhance the gr...

Q: A company is evaluating four appliances to choose the best from an economic point of view. The usefu...

A: Given MARR = 15 % time of each appliance = 10 years  

Q: Which best describes due diligence?     Having a standby amount of cash to open the restaurant.    ...

A: Due diligence is a process that involves doing an investigation, audit, or review to verify facts or...

Explicit and Implicit Cost Analysis

The entire idea of the cost of production or production cost is applied corresponding or we can say that it is related to money cost. Money cost refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factors of production or factor services.