Last Year, E Received 50 Acres of Undeveloped Land as a Gift

question 37

Multiple Choice

Last year, E received 50 acres of undeveloped land as a gift from her grandmother.The land had cost $20,000 15 years ago, but was appraised at $50,000 on the date of the gift.E's grandmother paid gift taxes of $12,000 on this $36,000 taxable gift ($50,000 fair value - $14,000 annual gift tax exclusion) .If E sells the land this year for $55,000 (net of selling expenses) , what is her gain on the sale?

• A)$5,000
• B)$19,000
• C)$23,000
• D)$25,000

Understand how a monopolist determines profit-maximizing output and price using demand and cost data.

Describe the economic implications of producing in the elastic vs inelastic portions of the demand curve for a monopolist.

Explain how monopolist's profits, losses, and break-even points are determined.

Analyze the non-existence of a supply curve in pure monopoly scenarios.

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Definitions:

Break-Even Point

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.

Net Loss

A financial situation that occurs when a company's total expenses exceed its revenues, indicating a negative profit.

Variable Costs

Costs that change in proportion to the level of activity or volume, such as raw materials and direct labor.

Selling Price

The amount of money a buyer pays to purchase a product or service, determined by factors such as cost, market demand, and competitiveness.