John decided to leave his job and open a bookshop in the city center. He was working as an engineer before and getting an annual salary of $35000. For the bookshop he paid $20000 for his worker, $15000 for rent, $10000 for utilities. He used his savings that was equivalent to $60000 at an interest rate of 7%. He bought all the books that he planned to sell by his savings. If he opens his bookshop in mall rather than city center his profit was predicted to be $25000. At the end of the first year his revenue from sales was identical to $210000. For John a) Calculate the implicit costs. b) Calculate the explicit costs. c) Calculate the total cost. d) Calculate his profit/loss. e) Should he continue to the business or go back to his job?

it is a i took the test.

answer; dividing net income by 1- t ;

answer; strategic planning;

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.