Answer:
greater than economic profit because the former does not take implicit costs into account.
Explanation:
Accounting profit= total revenue - explicit cost
Total revenue =price x quantity sold
Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials
an example
revenue = 100
explicit cost = 50
implict cost = 20
accounting profit = 100 - 50 = 50
economic profit = 50 - 20 = 30
economic profit is less than accounting profit
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
Answer:
Letter C is correct. <u>Just in time management.</u>
Explanation:
The just in time management system corresponds to a system whose focus is the elimination of waste in organizational processes, so its fundamental principle is lean production according to demand, so that there is greater speed and there is no stock formation and so that the product reaches the consumer in the right place at the right time.
This management system is very advantageous because it promotes the continuous improvement of organizational processes, in addition to reducing losses resulting from waste, which generates several benefits for a company, such as increasing the speed of the production process and reducing inventory costs, which generates a positive consequence in the entire production chain.
Answer:
D) People are willing to buy additional quantities of a good only if its price falls.
Explanation:
Marginal utility is the additional satisfaction that a person gets from consumption of an extra unit of a product.
Diminishing marginal utility states that as more units of a good is consumed the satisfaction derived reduces.
Since people are less satisfied with consumption, they are less willing to to pay for more.
However if the price of the good falls people will now be more willing to buy as they are spending less on a product they are less satisfied with.
Answer:
=14%
Explanation:
TVOM represents the Time Value of Money and it represents the worth of an amount of money in present time as compared to its worth in the future. TVOM states that money's potential capacity to earn makes it worth money if received today than if it received in the future.
To calculate the Time Value of Money for Wylie, the following step is undertaken
Step 1: Calculate the difference between $5000 to be received today and the $5,700 Wylie demands as minimum to receive if he is to wait for 1 year
=$5,700 - $5000
=$700
Step 2: Use the formula for TVOM
TVOM= (Difference in value in one year's time /The present amount offered today) x 100
= ($700 /$5,000) / 100
=0.14 x100
=14%
Alternate calculation
Use this formula = P(1+r)= F
P= Present value
r= rate
F= Future value
=$5000 (1 +r) = $5,700
= (1+r)= $5700/$500
=(1+r) = 1.14
r= 1.14 - 1
= 0.14 or 14%