Answer:
Calculate PV of a 10-year annuity discounted at 6% interest rate; PV = $11,040.13.
Explanation:
Short answer D
Labor costs could cause that type of inflation as well.
C is eliminated because Push Cost Inflation is cost increase in what it takes to make a product.
B is gone because it is really deflation not inflation. This answer implies a drop in price. Inflation is an increase in price.
A subsides are an increase in capital. That will lower the price or keep it stable. Not A
Answer:
opportunity cost
Explanation:
The concept of Opportunity cost deals with the idea that individuals, investors, or business owners, due to scarcity of resources, lost possible benefits that could be gained, as he or she chooses alternative choice.
Hence, the underlying reason or factor trade benefits both sides of a trading arrangement is rooted in the concept of OPPORTUNITY COST.
Therefore, the right answer is Opportunity cost.
Answer:
(A) True
Explanation:
Differential cost is the difference between the cost to produce Product O and produce Product P; in this case it’s the additional cost of $13 per pound to produce
So the statement “The differential cost of producing Product P is $13 per pound” is true
