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1 year ago

Why do economists think in terms of costs and benefits

Business

1 answer:

Anna35 [415]1 year ago

7 0

Answer:

Cost benefit analysis is usually preferred by economists, due to several reasons.

Explanation:

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The cost system best suited to industries that manufacture a large number of identical units of commodities on a continuous basi

ValentinkaMS [17]

Answer:

Process Costing

Explanation:

Process Costing allows so many units to be in production at the same time which are identical. The cost of each unit can be determined by calculating the average price using to total units produced.

7 0

3 years ago

Services can not be stored, warehoused, or inventoried. Because of this, many hotels and airlines offer deep discounts on rooms

vagabundo [1.1K]

Answer: This scenario demonstrates the PERISHABILITY quality of services.

Explanation: A Service Organisation can be defined as an organisation that practice the provision of such a service as economic activity.

Some of the qualities of Services include; variability; perishability; heterogeneity etc.

The perishability quality of service refers to the fact that services cannot be stored, warehoused, or inventoried and, therefore, are perishable.

4 0

3 years ago

Read 2 more answers

If Morton Company expects to sell VCR’s at $100 a unit with variable costs of $60 per unit and DVD’s at $200 per unit with varia

Thepotemich [5.8K]

Answer:

$72

Explanation:

To calculate the weighted contribution margin we can use the following formula:

[(sales price A - variable cost A) x proportional sales A] + [(sales price B - variable cost B) x proportional sales B]

= [($200 - $120) x 80%] + [($100 - $60) x 20%] = $64 + $8 = $72

7 0

3 years ago

Let’s assume a required reserve ratio of 10 percent.

Furkat [3]

Answer:

The answer is 72.9 dollars.

Explanation:

The reserve ratio of 10% means that bank must keep 10% percent of amount deposited in bank to meet emergency payments and can lend the remaining 90% to other banks. So the second bank can lend 81 dollars that is 90% of 81 dollars. As per this rule second bank has 72.9 dollars (90% of 81) to lend.

5 0

3 years ago

The Atlanta Braves signed an outfielder to a five-year contract. The contract calls for the following cash flows: a signing bonu

Aleonysh [2.5K]

Answer:

$63.56 million

Explanation:

We are to find the present value of the cash flows in order to determine the value of the contract today

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Cash flow in year 0 = $4.00 million

Cash flow in year 1 = $12.09 million

Cash flow in year 2 = $13.36 million

Cash flow in year 3 = $14.17 million

Cash flow in year 4 = $15.26 million

Cash flow in year 5 = $16.43 million

I = 6%

Present value = $63.56 million

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

6 0

3 years ago