Answer:
Rice is so cheap and truffles are so expansive because D. People eat so much rice that an additional serving of rice has little marginal value, but the marginal value of another serving of truffles is very high.
Explanation:
When it comes to tasty or nutritious foods, there should not be any reason to be more expensive than others food stuffs. However, they often cost a little more. Regarding rice and its easy way of cooking, it is not a strong argument to talk about the price. So the right answer D, due to the fact that is true that eating a higher rate of rice won't have such a great marginal value as it will with truffles. It has to do a lot with higher demand of rice.
Answer:
Sunk; disregarded
Explanation:
Sunk cost is cost that has already been expended and cannot be recovered. It shouldn't be considered when making decisions.
No matter how much one argues, one would not be able to recover the $25. Therefore, it is sunk cost.
I hope my answer helps you
Quota would be your answer since the government is restricting automobiles...
Answer:
The NPV of the project is $974.
Explanation:
The net present value is the today's value of a stream of cash flows. The net present value will be the sum of all the expected future cash flows from a project less the initial investment required for the project and it is used to evaluate the investment decisions.
The net present value of an investment project will be:
NPV = CF1 / (1+r) + CF2 / (1+r)^2 + ... + CFn / (1+r)^n - Initial investment
or
If the cash flows are constant or of same amount through out, occur after the same interval of time and are for a defined period of time, they become an annuity and the NPV of such a project can be calculated by,
NPV = (Cash flow per period * Present value of Annuity factor) - Initial cost
The NPV of this project will be = (2000 * 2.4869) - 4000 = 973.8 rounded off to $974
