Answer:
Prime costs= $480,000
Explanation:
Giving the following information:
Grin produced 4,000 cameras with the following costs:
Direct materials $400,000
Direct labor 80,000
Manufacturing overhead 320,000
To calculate the prime costs we need to use the following formula:
Prime costs= direct material + direct labor
Prime costs= 400,000 + 80,000= $480,000
Answer:
False
Explanation:
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Answer: A. costs of moderate inflation are nearly zero whereas high inflation is quite costly.
Explanation:
Economists generally believe that moderate inflation is actually good for the economy as prices need to increase in a healthy manner overtime in order to drive consumption. This means that to them, the cost of moderate inflation is nearly zero.
This is a sharp contrast to high inflation which most economists generally believe to be costly as it reduces the savings of people as well as their real wages and welfare.
Answer:
A. Consumers and firms use all available information as they act to achieve their goals
Explanation:
Information is a value, maybe the most important. It´s also scarce and expensive: business pay fortunes to smart men.
And the most worthy information is the one that allows a person to predict the futuro. For instance, who knows what will be the price of oil in one year.
Usually available information is not enough, people cannot acces to a better option, therefore mistakes are made, even throught and after "rational" reasoning. So, people act "rationally", in spite of goal is not always achieved.
The answer is: As long as there are economic costs, accounting profit will be greater than economic profit.
Economic costs are defined as the opportunity cost incurred when processing inputs for production, while economic profit is defined as the combination between the revenue that a business entity generates and the monetary and opportunity costs that it pays.
Accounting profit, on the other hand only accounts for the monetary costs that a business entity has to pay and the revenue that it generates.
