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2 years ago

Increasing opportunity cost along a bowed-out production possibilities frontier occurs because:__________

1 answer:

3 0

Increasing opportunity cost along a bowed-out production possibilities frontier occurs because <u>of the scarcity of factors of production</u>.

The law of increasing opportunity cost holds that as an economic system moves alongside its manufacturing opportunities curve inside the path of producing extra of a particularly appropriate, the possibility fee of additional devices of that truth will increase.

The opportunity cost is time spent analyzing and that money to spend on something else. A farmer chooses to plant wheat; the opportunity fee is planting an extraordinary crop or a trade use of the sources (land and farm gadget). A commuter takes the train to work as opposed to riding.

Opportunity cost is an economic time period that refers back to the cost of what you have to give up that allows you to pick something else. In a nutshell, it is the cost of the street not taken.

Learn more about opportunity cost here: brainly.com/question/1549591

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Bike St. Pete currently produces 1,000 tires per month. The following per unit data apply for sales to regular customers: Direct

Tpy6a [65]

Answer:

$78,000

Explanation:

Total cost of producing 2,000 tires:

= [(Direct materials + Direct manufacturing labor + Variable manufacturing overhead) × 2,000 units] + Fixed cost

= [($20 + $3 + $6) × 2,000 units] + ($10 × 2,000 units)

= $58,000 + $20,000

= $78,000

Therefore, the total cost of producing 2,000 tires is $78,000.

8 0

3 years ago

Which of the following statements about materials is false?

weqwewe [10]

Answer:

The correct answer is B

Explanation:

Purchase is the term which is defined as the bought or purchase of raw material that is necessary or required for the business in order to create or manufacture goods or services. So, that the product could be presented into the market for sale and the business could make profit from the sale of product.

So, the statement is false as the acquisition of material is charged to the purchase account.

5 0

3 years ago

The Morris Corporation has $350,000 of debt outstanding, and it pays an interest rate of 8% annually. Morris's annual sales are

Vinil7 [7]

Answer:

8.14 times

Explanation:

The computation of the Time interest earned ratio is shown below:

As we know that

Times interest earned ratio = (Earnings before interest and taxes) ÷ (Interest expense)

where,

Earnings before interest and taxes = Income before income tax for the year + Interest expense

But before tha, we need to do the following calculations

The interest amount is

= $350,000 × 0.08

= $28,000

The net profit is

= $1,750,000 × 8%

= $140,000

The EBIT is

= Profit before tax + interest expense

= $140,000 ÷ (1 - 0.30) + $28,000

= $200,000 + $28,000

= $228,000

And, the interest expense is $28,000

So, the TIE ratio is

= $228,000 ÷ $28,000

= 8.14 times

3 0

3 years ago

Settings alzania produces and consumes 500,000 tons of cotton during a year. Reports indicate that alzania's neighbor, which a

UkoKoshka [18]

Answer: C- Alzania's neighbor exported half its production of cotton that year

Explanation: Alzania produces and consumes 500,000 tons of cotton during a year. While, the neighbor which also employs the same number of people in the cotton industry, consumed 400,000 tons of cotton. There is no information on production of the neighbor. Just by looking at the consumption units we can argue that Alzania has an absolute advantage over the neighbor as it consumes more. However, if there is any information on the amount of exports of cotton from the neighbor then it will weaken the absolute advantage conclusion.

Thus, if <em>Alzania's neighbor exported half its production of cotton that year </em>the total production of cotton is greater of the neighbor than Alzania.

6 0

3 years ago

The internal rate of return (IRR) refers to the compound annual rate of return that a project generates based on its up-front co

Sav [38]

Answer:

The answer and procedures of the exercise are attached in the following archives.

Explanation:

Consider this explanation too

The IRR is the project’s expected rate of return, assuming that intermediate cash flows also earn the IRR. If this return exceeds the cost of the capital invested in the project, the excess value goes to the firm’s shareholders. Therefore, independent projects whose IRR is greater than the WACC should be accepted.

Therefore in this case WACC of the project is 7% and IRR of the project is 1.86% which is less than WACC of the project. Hence the firm reject the project delta.

Calculation of IRR is based on Cash inflows and outflows for the number of years so that increase in cost of capital will not affect IRR.

5 0

3 years ago