Suppose that unskilled workers find it worthwhile to acquire skills when the wage differential between skilled and unskilled workers reach a certain threshold. Explain the effects on the supply of unskilled workers, the supply of skilled workers, and the equilibrium wage for the two groups. In particular what is the equilibrium wage of skilled workers relative to unskilled workers after some unskilled workers receive training

a. Short-run economic profit: $  40,000  per lease.

Long-run economic profit: $  0  per lease.

b. Landowners would gain $40,000 per plot each year due to higher rent for land

Explanation:

The short-run economic profit for a cotton farmer is:

Economic profit = Total revenue - Explicit costs - Implicit costs = $60,000 - $14,000 - $6,000 = $40,000 per lease.

Landowners would reap the long-term benefits of the scheme. Their income would rise by $40,000 per year per 120-acre plot because rent would rise from $10,000 to $50,000.

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation:

the answer is b. the events might happen and are based on crimes.