Question
In: Economics
The city of New Orleans has 200 advertising companies, 199 of which employ designers of normal...
The city of New Orleans has 200 advertising companies, 199 of which employ designers of normal ability at a salary of $200,000 a year. The firms that employ designers of normal ability each collect $500,000 in revenue a year, which is just enough to ensure that each earns exactly a normal profit. However, the 200th company employs Janus Jacobs, an unusually talented designer. Because of Jacob's talent, this company collects $900,000 in revenue a year.
a. How much will Jacobs earn? What proportion of his annual salary will be economic rent?
b. Will the advertising company for which Jacobs works be able to earn an economic profit?
PLSSSS explain each step, so lost!
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
Your company has just signed a three-year nonrenewable contract with the city of New Orleans for...
Your company has just signed a three-year nonrenewable contract
with the city of New Orleans for earthmoving work. You are
investigating the purchase of heavy construction equipment for this
job. The equipment costs
$203,000
and qualifies for five-year MACRS depreciation. At the end of
the three-year contract, you expect to be able to sell the
equipment for
$74,000.
If the projected operating expense for the equipment is
$68,000
per year, what is the after-tax equivalent uniform annual
cost (EUAC) of...
The City of Orleans has the following balances in the accounts of its Capital Project Fund...
The City of Orleans has the following balances in the accounts
of its Capital Project Fund at year end. All accounts have normal
balances. All amounts are in millions.
REQUIRED:
(A) Prepare a statement of revenues, expenditures and changes in
fund balance and (B) Prepare a balance sheet with the following
information listed below.
Cash $75
Deferred inflow of resources $20
Encumbrances $7
Expenditures $10
Fund Balance - Beginning of Year $15
Grants Receivable $15
Other financing sources $50
Other...
The following list of cash flows was taken from the New Orleans City airport fund’s statement...
The following list of cash flows was taken from the New Orleans
City airport fund’s statement of cash flows. All amounts are in
thousands. Prepare the Statement of Cash Flows.
Cash on hand, beginning of year
$120
Wages and salaries paid
915
Interest received from investments
25
Operating lease receipts
2650
Purchases of supplies
1,025
Collections (for services) from other funds of the city
290
Interest paid on long-term capital debt
155
Payments on capital lease
1000
Proceeds of revenue...
Louis owns a condominium in New Orleans which has been his principal residence for 12 years....
Louis owns a condominium in New Orleans which has been
his principal residence for 12 years. He wants to be near Lake
Ponchartrain since he enjoys water activities. Therefore, he sells
the condominium. His original intent was to purchase a house in New
Orleans near the lake. However, the cost of such properties far
exceeded his sales proceeds. He was able to purchase a house on the
lake in Covington, which is located across the causeway. He
invested all of...
A city wants to know if a new advertising campaign to make citizens aware of the...
A city wants to know if a new advertising campaign to make
citizens aware of the dangers of driving after drinking has been
effective. The accompanying table shows the number of drivers who
have been stopped with more alcohol in their systems than the law
allows for each day of the week in the week before and the week a
month after the campaign starts. Assume that the data from each
population is Normally distributed. Complete parts a through i...
A city wants to know if a new advertising campaign to make citizens aware of the...
A city wants to know if a new advertising campaign to make
citizens aware of the dangers of driving after drinking has been
effective. The accompanying table shows the number of drivers who
have been stopped with more alcohol in their systems than the law
allows for each day of the week in the week before and the week a
month after the campaign starts. Assume that the data from each
population is Normally distributed. Complete parts a through i...
Which companies spend the most money on advertising? A news website maintains a list of the...
Which companies spend the most money on advertising? A news
website maintains a list of the top-spending companies. In 2014,
Company A spent more than any other company, a whopping $5.10
billion. In second place was Company B, which spent $3.18 billion.
The top 12 companies and the amount each spent on advertising in
billions of dollars are as follows.
Company
Advertising
($ billions)
Company
Advertising
($ billions)
A
5.10
G
1.79
B
3.18
H
2.05
C
3.11
I
1.59...
A regional airline sells 200 tickets to New York City for an average price of $...
A regional airline sells 200 tickets to New York City for an
average price of $ 150 one way. Half of the people on the flight
will purchase a meal for $5.
The airline’s employee costs per flight include $500 each for the
pilot and copilot, and $200 for each flight attendant. The law
requires airlines to have at least one pilot, copilot, and flight
attendant for each flight. Fuel for the flight is expected to cost
$8,000, and the...
A regional airline sells 200 tickets to New York City for an average price of $...
A regional airline sells 200 tickets to New York City for an
average price of $ 200 one way. Half of the people on the flight
will purchase a meal for $6. The airline’s employee costs per
flight include $500 each for the pilot and copilot, and $200 for
each flight attendant. The law requires airlines to have at least
one pilot, copilot, and flight attendant for each flight. Fuel for
the flight is expected to cost $8000, and the...
II-(7 pts) A city wants to know if a new advertising campaign to make citizens aware...
II-(7 pts) A city wants to know if a new advertising campaign to
make citizens aware of the dangers of
driving after drinking has been effective. They count the number
of drivers who have been stopped with
more alcohol in their systems than the law allows for each day
of the week in the week before and the
week a month after the campaign starts. Let ?? be the difference
between the number of drivers caught
with excessive alcohol in...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- A)Given a generic array with ‘n’ items (not only integers). Give a solution for checking whether...
- Explain virtualization as a key technology in cloud computing environments, as well as the purpose of...
- A system is set up to take raw grading information from the console and calculate a...
- I have an 8 by 8 array that has values ranging from 1-64. I am wanting...
- The background information and instruction of the question is provided below, and i only asked for...
- Which business or industry sectors have the most startups companies that consider a small and medium...
- 16. Cost of trade credit Firms usually offer their customers some form of trade credit. This...
ADVERTISEMENT