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3 years ago

Which best describes an opportunity cost?

Business

2 answers:

12345 [234]3 years ago

4 0

Opportunity cost is giving up an opportunity to do something else when making an economic decision.

olya-2409 [2.1K]3 years ago

3 0

Opportunity cost is best described as below:

Giving up an opportunity to do something else when making an economic decision.

In simple words, when there are two or more options in front of a person while making a decision, and he takes one of them by keeping something in mind and leave the other ones, then he is losing the opportunity of having the other alternative. This losing cost is actually the Opportunity Cost. It is basically the loss of one option while choosing the other one.

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A small Canadian firm that has developed some valuable new medical products using its unique biotechnology know-how is trying to

nasty-shy [4]

Answer:

Correct Answer:

a. Manufacture the product at home and let foreign sales agents handle marketing.

Explanation:

For the small Canadian company, manufacturing the product at home (Canada) would afford them the opportunity to protect their new medical product from piracy. Also, they would be able to receive tax incentives from their government as well file for patent of their new innovation.

The foreign agent would strictly be focused on the marketing of the finished product without having access to the detailed information of the product.

8 0

3 years ago

According to the aggregate demand curve, when the aggregate price level _____, the quantity of aggregate output _____. rises; de

iren2701 [21]

Answer:

rises; demanded falls

Explanation:

The aggregate demand curve exhibits a negative relationship between aggregate price levels and aggregate output demanded. If aggregate price levels falls, aggregate output demanded rises and if aggregate price levels rises, aggregate output demanded falls.

The aggregate demand curve is negatively sloped.

Please check the attached image for a graph of the aggregate demand curve.

I hope my answer helps you

3 0

3 years ago

While the evidence suggests that over long periods of time that stocks will outperform bonds, individuals with a long-term inves

Scrat [10]

Answer:

Stocks and Bonds

Yes. It is a rational behavior for individuals with a long-term investment horizon to choose to invest in bonds rather than investing in stocks despite the overwhelming "evidence that suggests that over long periods of time stocks still outperform bonds."

Rational behavior involves making rational choices that provide optimal levels of benefit or utility for the individual. People who make rational choices would rather choose bonds with lower risks and returns than stocks with higher risks and returns.

Explanation:

Every rational investor would prefer to reduce her risk exposure instead of increasing it. Every investor is also aware that investments with higher risks attract higher returns. However, determining the certainty of the returns is difficult.

4 0

3 years ago

Sarah buys 500 shares of stock at $18 and sells the holding for a capital gain of $3,000. What was the share price at the time o

djverab [1.8K]

Answer:

$24

Explanation:

500 * 18 = $9000 worth of stock initially.

She sells with a $3000 gain, which means the value of the stock is $12000

12000/500 = $24

7 0

3 years ago

Ashley is considering the purchase of a stock that has just paid a dividend of $0.72, today. The dividend is expected to grow at

arlik [135]

Answer:

$10.28

Explanation:

Step 1. Firstly we use the of the The dividend discount model (DDM)

This calculation is: D1 = D0 x (1 + g)

D1 = $0.72 x (1 + 2.8%) = $0.74.

Where

Do = Dividend now

D1 = Dividend in year 1

g = growth

Step 2 Next, using the Gordon Growth Model,

Price per share is found to be D(1) / (r - g)

Price = $0.74 / ( 10% - 2.8%) = $10.28

where:

Do = Dividend now

D1 = Dividend in year 1

g = growth

r = required return

7 0

3 years ago