Answer to Question #70235 in Microeconomics for Ariba
a) What would be business and economic profit of Mr. A? b) Which shareholder is economically well-off and Why? c) What would be their total revenue in 15 years if the growth rate of the business is 2.3% per annum?
• Business profit=(500000-175000- 70000-(70000*0.15))*0.6=146700
• Shareholder Mr. A, because his economic profit more than economic Mr. B profit.
The total business value of KFC in 1990 was $ 106,940. The management is expecting
growth of 1.3 percent.
How long KFC business would take to reach at $154,287 worth
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