Mike starts his own business after quitting his job in which he made $75,000. expenses include $100,000 for wages and salaries, which includes a wage for the owner of $75,000, utilities of $5000, equipment of $50,000, and materials of $40,000. if revenues are $200,000, his accounting and economic profits are respectively:

Accounting Profits = $130,000

Economic profit = $5,000

Explanation:

Data provided in the question:

Previous wage = $75,000

Expenses for wages and salaries = $100,000

Wage for the owner = $75,000

Utilities = $5000

Equipment charges = $50,000

Materials = $40,000

Revenues = $200,000

Now,

Since he is himself the owner his salary will not be included in the wages expense

Thus,

Net expense for salary = $100,000 - $75,000

= $25,000

Accounting Profits = Revenues - Net expense for salary - Utilities - Materials

= $200,000 - $25,000 - $5,000 - $40,000

= $130,000

Economic profit = Accounting Profits - Equipment charges - Previous wage

= $130,000 - $50,000 - $75,000

= $5,000

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer: a. the kind of population living in your neighbourhood.

the census explorer data tool by the us census bureau allows the user to zoom in on any neighbourhood within the united states and find the kind of people residing in that by race and age.  

the tool needs to needs to be used twice – once in order to find what type of people reside in a neighbourhood, and then to see the age groups of the people in the same neighbourhood.