Answer:
may limit the extent to which a nation specializes in producing of a particular product.
Explanation:
Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.
Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.
For instance, if you decide to invest resources such as money in a food business (restaurant), your opportunity cost would be the profits you could have earned if you had invested the same amount of resources in a salon business or any other business as the case may be.
The law of increasing opportunity costs can be defined as a principle in business which states that, if an organization or business firm continually raise (increase) its level of production, its opportunity cost also increases (rises).
Consequently, this may limit the extent to which a nation or country in any part of the world specializes in producing of a particular product so as to reduce or lower its opportunity cost.
Answer:
Her investment horizon is 5 years
Explanation:
If investment = $10,000
10-year zero coupon bond
$20,000 in a 3-year semiannual duration = 2.5 years.
Duration = (1/3 )*10 + (2/3)*2.5
= 5 years
Initial asset is $28,158.
Final asset is $21,407.
The difference is
Since this is a span of 8 years, $6,750 is divided by 8.
On average, the asset increases by $843.75.
Answer:
The correct answer is: zero; zero.
Explanation:
If a monopolist discovers a way to perfectly discriminate, it means that the monopolist will charge equal to the willingness to pay from each consumer.
The consumer surplus is the difference between the maximum price a consumer is willing to pay and the price it actually pays.
Since each consumer is paying price equal to its willingness to pay, the consumer surplus will be zero.
There will be no efficiency costs. The monopolist will sell output where the maximum price the consumer is willing to pay is equal to or greater than the marginal cost. So all efficient trades will occur, there will be no efficiency costs.