Answer: $8,600
Explanation:
Implicit cost is also known as the opportunity cost which means that it is the benefit of the next best alternative that was foregone when the current decision was made.
The implicit cost here is therefore:
The $8,000 that Charles could have been making as a lifeguard.
The interest per year he could have been earning on the $5,000 he used to buy mowing equipment.
The depreciation on the mowing equipment because depreciation is not an explicit cost but an implicit one.
= 8,000 + (2% * 5,000) + (10% * 5,000)
= 8,000 + 100 + 500
= $8,600
Answer:
1,200 hours
Explanation:
Solving mathematically this will be :
<em>y = ax^b</em>
where,
y is the cumulative average time required to produce x units
a is the time required to produce the first unit of output
x is the number of units of output under consideration
b is the log of the Learning Curve % divided by Log 2
The firm use 150 hours to work on the product during the second month
Amount of time used in the first month will be calculated as :
y = 400(8)^(-0.322)
= 204.8 hours (average)
Total for 8 units = 204.8 hours × 8 units
= 1,638.40 hours
Amount of time used for the total months to manufacture 18 units :
y = 400(18)^(-0.322)
= 157.74 hours (average)
Total for 18 units = 157.74 hours × 18 units
= 2,839.32 hours
Therefore,
Hours to be used in the second month = Time on 18 units - Time on 8 units
= 2,839.32 hours - 1,638.40 hours
= 1,200 hours
So, the firm use 1,200 hours in total for the 10 units. Which gives an average of 120 hours per unit
Answer:
Government should increase the price from $2 to $3.
Explanation:
Price elasticity of demand is calculated by dividing percentage change in quantity demanded by the percentage change in price.
Therefore:
Price elasticity of demand =
From the question, we see that the price elasticity of demand for cigarettes is about 0.4.
Percentage reduction in quantity demanded = 20%
Percentage reduction in price = x
We calculate thus:
0.4 = 20/x
0.4x = 20
x = 20/0.4
x = 50
Percentage reduction in price is therefore 50%
This means that government should increase the price from $2 to $3.
I think the correct answer should be B. Because it prepares students for jobs
Answer:
B. Janet's expertise is in low supply and high demand.
Explanation:
Sam's transcription occupation is in high supply and low demand ; this means that there are a lot more transcriptionist available to work than open positions employers are offering. This pushes down the salary and that explains why Sam earns $30,000 per year. Janet's occupation on the other hand pays high salary of $73,000 per year which indicate that jet propulsion specialists are in high demand but there is a shortage of expertise in the market.