Andrew has decided to open an online store that sells home and garden products.  After searching around, he chooses the software company Initech to provide the software for his website since their product required the least amount of specialized investments for him to use it.  They agreed upon price of $5,000.  To use Initech’s software, Andrew makes $2,500 in sunk capital investments and spends 55 hours learning how to use Initech’s software, which is very different from other software packages.  Both Andrew and Initech view Andrew’s time as worth $22 per hour and Initech is fully aware of the investments Andrew must make to use their product.  After Andrew’s investments were made, Initech came to Andrew and asked for more money.  What do you think is the new price Initech requested Andrew to pay?

Antonio lives in Denver and runs a business that sells boats. In an average year, he receives $842,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $452,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $38,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Antonio does not operate this boat business, he can work as an accountant, receive an annual salary of $48,000 with no additional monetary costs, and rent out his showroom at the $38,000 per year rate. No other costs are incurred in running this boat business. Identify each of Antonio's costs in the following table as either an implicit cost or an explicit cost of selling boats. Implicit Cost Explicit Cost The wholesale cost for the boats that Antonio pays the manufacturer The wages and utility bills that Antonio pays The rental income Antonio could…

Yakov lives in Montreal and runs a business that sells boats. In an average year, he receives $793,000 from selling boats. Of this sales revenue, he must pay the manufacturer a wholesale cost of $430,000; he also pays wages and utility bills totalling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $15,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Yakov does not operate this boat business, he can work as a financial advisor and receive an annual salary of $50,000 with no additional monetary costs. No other costs are incurred in running this boat business. Identify each of Yakov's costs in the following table as either an implicit cost or an explicit cost of selling boats. Implicit Cost Explicit Cost The rental income Yakov could receive if he chose to rent out his showroom The wholesale cost for the boats that Yakov pays the manufacturer The salary Yakov could earn if he worked as a financial…

Felix lives in San Francisco and runs a business that sells pianos. In an average year, he receives $711,000 from selling pianos. Of this sales revenue, he must pay the manufacturer a wholesale cost of $411,000; he also pays wages and utility bills totaling $279,000. He owns his showroom; if he chooses to rent it out, he will receive $1,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Felix does not operate this piano business, he can work as a financial advisor and receive an annual salary of $31,000 with no additional monetary costs. No other costs are incurred in running this piano business. Identify each of Felix's costs in the following table as either an implicit cost or an explicit cost of selling pianos. Implicit Cost Explicit Cost The salary Felix could earn if he worked as a financial advisor The wages and utility bills that Felix pays The rental income Felix could receive if he chose to rent out his showroom The…

I asked this question it was not answered and I was charged please issue me a refund and answer this question. Dina is working for a consulting firm making $60,000 per year but considers starting her own consulting company. Dina has determined that to launch the business, she needs to invest $100,000 of her own funds. The annual cost of running the business will include $70,000 for the rent of the office space, $210,000 for employee wages, and $5,000 for materials and utilities. Dina plans to manage the business, which means that she will have to quit her current job. Suppose that the interest rate (or rate of return) on investments in the economy is 6%.   Dina's total implicit cost per year is    .   Dina's total cost per year is    .

Tesla Many analysts cite Tesla as the most innovative car company to enter the automobile industry in recent history. The company was founded in 2003 with the vision of being an independent automaker that would build affordable electric cars. Over the next 17 years, it produced five different car models and continues to introduce concepts for additional vehicles. It has also expanded into home battery and solar panel products. In the first half of 2020, 81% of electric vehicles sold were Teslas, and its affordable sedan, the Model 3, is the all-time bestselling electric vehicle ever. Tesla’s cars helped create a new market for electric vehicles. In addition, its cars have technological components that have advanced safety throughout the automobile industry. Its cars can come with self-driving capabilities and advanced safety warnings. Parts of these technologies have been adopted by other car makers. 1.Think about the automobile industry. Explain what type of market it is by answering…

Sean owns a condo that he values at $500, 000. Sean hosts a dinner party, and invites Mo, a friend of a friend, who recently moved home to Halifax. Mo hates the apartment she just moved into. She thinks she will be a lot happier if she finds a place she can buys. Over dinner, Sean mentions he is moving to Toronto and looking to sell his condo. Mo has $1,000,000 in cash and values the condo at $600,000. The next morning, Mo understands that Colin, another friend, made an offer of $550,000. What is Sean's threat value? Question 17 options: $500,000 $1,600,000 $1,000,000 $550,000

Milo is the young, likable, optimistic, and generous son of a prominent public official. He has a master's degree in business and is the business partner of Kent and Lily in an oil drilling and exploration business. Milo also serves as a director on the board of the Corley Savings and Loan Association. While serving on the Corley Board, Milo votes to approve major loans to Kent and Lily without disclosing to the other directors that he is a business partner of Kent and Lily. Milo also personally arranges for a $900,000 line of credit from Corley for an oil drilling venture in which he is a partner with Kent. The drilling venture is unsuccessful and Kent and Lily both default on their loans to Corley, which then causes the S & L to become insolvent. Federal banking officials seize Corley and liquidate its assets to pay creditors and depositors. Because Corley is federally insured, tax money is also used to pay off depositors whose deposits are insured under federal programs. Corley…

Scenario: Wang's Wicker Furniture Store Rather than put the $100,000 that his grandmother left him in a mutual fund that earns 5% each year, Tommy Wang quit his job, which paid $60,000 per year, and started Wang's Wicker Furniture Store. He rented a showroom for $20,000 for the year, purchased $60,000 in wicker furniture, and incurred costs of $40,000 for sales help and advertising. In his first year, his revenue was $150,000. Use Scenario: Wang's Wicker Furniture Store. The accounting profit of Wang's Wicker Furniture Store is: a. $30,000. b.-$30,000. O c. $60,000. O d. $200,000.

Dana was dating Wade, a wealthy real estate entrepreneur. Wade was much older than Dana and knew he needed to offer something “special” to make her stay. Wade told Dana that if she continued dating him, he would pay her $10,000 a month. Wade paid Dana for two years when suddenly, for no apparent reason, he stopped the monthly payments. Dana stayed with Wade for another six months, but decided enough was enough and left. She wanted the $60,000 she was owed for the six months; Wade refused to pay her. Is Dana entitled to the $60,000?