You own a nice landed house near Xiamen University Malaysia campus. In Jan 2021, you decide to lease (rent) it to your best friend as she is taking an MBA course in XMUM. O a. Thus, there is no opportunity cost of leasing involve for the landed house because you will definitely collect a rent from your best friend. O b. Thus, the only cost that relevant to this decision is the amount or price that you paid for the landed house. O c. Thus, there is no opportunity cost involve in leasing the landed house because you own it. O d. Thus, there will be an opportunity cost of leasing the landed house because you could have chosen to live stay in it.
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- A firm is considering an investment that will earn a 6 rate of return. If it were to borrow the money, it would have of pay 8 interest on the loan, but it currently has the cash, so it will But need to borrow. Should the firm make line investment? Show your work.Yverrry is earning $200,000 per year as medical sales representafive. Due to the covid pandemic, she decided to open a small restaurantin the City where she lives. She invested $200,000 of his savings that has been eaming $5,000 interest per year. Since there was vacant space in the area where she lives, she decided to use this lot to put up his restaurant. The lot has been earning $10,000.00 annually as it is beingrented as a parking space for the executives in the nearby Firm. She hired one (1) clerk and 3 helpers who will help him in the restaurant. Water and electricity bills for the year reached $50,000.00. Yverry will be paying the clerk $3,000.00 while the 3 helpers $2,500.00 each monthly. Affer a year of operation, Yverry was able to earn a sales revenue of $800,000.00 Required: Compute for the Yverry's accounting and economic profit.The manager of the donut shop tells you that hesells donuts for $1 each, and that if he were to makeadditional donuts, based on his current level ofoutput, it would cost him $0.80 per donut. Do yourecommend that the manager increase or decreasethe number of donuts he makes?
- You are currently in a job as a chef in a restaurant earning $100,000 per year. You are considering opening up a restaurant in a building which you currently own. You estimate that, if you wanted to, you could rent out your building for $25,000 per year to another restaurant. Last year, your revenues and expenses from the restaurant were the following: Revenues $400,000Cost of Food $120,000Salaries/Wages $100,000Utilities $25,000Taxes $20,000 What is your accounting profit? Show your calculations What is your economic profit? Show your calculations Assuming that you are indifferent between being a chef or owning a restaurant, should you open up your restaurant? Explain why. Now suppose that instead of owning the building where your restaurant will be located, you had to pay rent of $25,000 per year for the building. Will your answers to parts 1-3 change? Show your calculations. Explain how and why your answers will change or…A firm produces bread (B). The company wants to lease new equipment. Themarket offers new high-speed ovens (H) and slower ovens (S) with an oldertechnology. The high-speed ovens can produce twice as much bread in the sameamount time.a) Derive the production function.b) The high-speed ovens cost 100 Euros per month and the slower ovens costs 70Euros per month. In which type of ovens should the company invest?c) If the price of the high-speed ovens remains unchanged, calculate the price of theslow-ovens, at which the company could be indifferent in leasing only high-speedovens, slow-ovens or possibly a combination of both.Josh and Alex work as design engineers creating high-end lighting fixtures. After one particularly enlightened afternoon, they decide to follow their dreams and open a cupcake bakery. Please sort their various costs, listed below, into the correct category. Implicit Costs Not a Cost Explicit Costs ! Q A N Ⓒ2 Advertising space taken out on a social networking website The money they pay their neighbor's six year old son to deliver cupcakes to their customers. W S 12 #3 16 80 F3 E D X C $ 4 888 F4 R his previous job designing The salary Alex earned in lighting fixtures. LL 25 % U The garage space used for baking that can no longer be rented out to a college student FS T Da A 6 V B Y Supplies like sugar, butter and baking trays G H Ⓒ Previous Check Answer Next Exit 87 & 44 N 17 U J * 8 ∞ 3 14 9 K → 19 O 1 AA F10 P
- QUI The figure below depicts the production function of grain for farmers under average growing conditions with the currently available Noi technology. Mar 9007 PF 800- 700- 600- 500- 400- 300- 200어 100- o Slope 732,000/ 1,600 = 458 04 400 800 1200 1600 2000 2400 2800 Number of farmers Select one or more: In a year with exceptionally good weather conditions, the production function curve will be higher and parallel to the curve O a. above. O b. A discovery of new high yielding crop seeds would tilt the production function curve higher anti-clockwise, pivoted at the origin. O C. In a year of bad drought the production curve can turn downwards for large numbers of farmers. O d. If there is an upper-limit on the amount of grain that can be produced, then the curve will end up horizontal for large number of farmers. S Type here to search 25 hp t4 15 16 eSC 5 6. 7. 00 %24 3. . ........ Kilogrammes of grain produced (thousands)The teohnically efficient combination of two products a business oän produco in the current period given its existing resources and teohnology is: LA) The produotion possibilities frontier (b) The marginał rate of product transformation-- (c). The least cost.combination of two products (d) The marginal physical product020-2021 Bah Marginal cost is given by 12 eu.54. Fixed cost is 56. What is the total cost? O a. 6e0.5Q Ob. 24e0.5Q+32 Oc. 6e0.5Q 50 O d. 24e0 5Q 56
- Suppose you sell items on a web site like Etsy and making them requires you to rent some equipment costing $1000 per year as a fixed cost. The materials for making these items cost $30 per item as a variable cost, and you sell them for a price of $50 each. What number of items D' must you make and sell each year for you to breakeven on the cost of this activity? You may be able to raise your sales price and then sell fewer items to maximize profit. Since other people make and sell similar items, a higher price lowers the demand for your product according to the price function p = $120 - 1.5 D. What is the profit maximizing number of items D* that you would need to make and sell to maximize profit? What is the profit earned for the annual number of items made and sold in part b?The owner of Barb’s Burgers has suggested the firm should invest in more moderntechnology and created a list of potential changes she thinks may be helpful as aninvestment. She has asked you to analyze the four potential choices and comment onwhat this would change in terms of cost:1. Build kiosks in the dining area for people to place their orders without having tointeract with a cashier. The kiosks would need also need to be integrated into thepoint of sales system to track orders for the kitchen Question: Argue how each of these is likely to change the cost of the firm once implemented (i.e. are any of these a fixed cost or a variable cost). How this adjust theamount of labour and/or capital currently necessary for the firm? Would the technology be a general technology, labour-saving, or capital-saving?You decide to buy a car. The following are some questions you have to answer with respect to your purchase. Which question is directly associated with engineering economics? O a. what colour? O b. what size? O c. CD player or tape player? d. to lease or to own? O e. Ford or Toyota?