Author Question: Assume Brad worked as a contractor for a year and had revenues of 120,000 and explicit cost of ... (Read 46 times)

Sufayan.ah · **on:** Jun 30, 2018

Assume Brad worked as a contractor for a year and had revenues of 120,000 and explicit cost of 70,000 . If he could have been paid 80,000 working for a computer company, his:
a. accounting profit equaled 10,000 and he would be rational to stop working as a contractor.
b. accounting profit equaled 50,000 and he would be rational to continue working as a contractor.
c. economic profit equaled 50,000 and he would be rational to continue working as a contractor.
d. economic profit equaled -30,000 and he would be rational to stop working as a contractor.

Question 2

Yield on a bond refers to:
a. the coupon-rate of the bond.
b. the money earned by selling a bond.
c. the return from a bond after its maturity.
d. the difference between the face value of a bond and the bond price.
e. the annual return until the bond matures.