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Sonbull [250]
4 years ago
15

​Pam, Pru, and Pat are deciding how they will celebrate the New Year. Pam prefers to go on a​ cruise, is happy to go to​ Hawaii,

but does not want to go skiing. Pru prefers to go​ skiing, is happy to go to​ Hawaii, but does not want to go on a cruise. Pat prefers to go to Hawaii or to take a​ cruise, but does not want to go skiing. They decide to go to Hawaii.
What is the opportunity cost of the trip to Hawaii for each of them?

A. The opportunity cost for each of them is the airfare to Hawaii
B. The opportunity cost for Pam and Pat is a cruise and for Pru it is skiing
C. The opportunity cost for Pam and Pat is the airfare to Hawaii minus the cost of a cruise and for Pru, it's the airfare minus the cost of a ski trip
D. The opportunity cost for each of them is the airfare to Hawaii minus the cost of a cruise
Business
2 answers:
bearhunter [10]4 years ago
7 0

Answer: Option (b) is correct.

Explanation:

Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.

If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.

The preferences of Pam, Pru and Pat are given. Therefore, according to their preferences, the opportunity cost of the trip to Hawaii for Pam and Pat is a cruise and for Pru is a skiing.  

isobel2 years ago
0 0

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2 years ago
XYZ has 400,000 shares of common stock outstanding, a P/E ratio of 8, and $500,000 in net income. The board of directors has jus
alexira [117]

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P=\frac{P}{E}*E\\ P=8*\frac{\$500,000}{400,000} \\P=\$10\\

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4 0
3 years ago
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Answer:

50 percent: your needs

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20 percent: Your savings and debt. The next 20 percent of your paycheck is for your savings and debt repayments. In other words, paying off the past and investing in the future

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