Answer:
The correct answer is: The benefit of making the request will likely exceed the cost.
Explanation:
Utility maximization implies obtaining the greatest return after making a decision considering the least amount possible of resources in the process to obtain what is desired. The benefit is greater than the cost, utility maximization takes place in determining what the benefit and the cost could be.
Thus, <em>if you decide to tell your spouse where to go to eat for your birthday, the benefit of informing that is likely higher than the cost of disclosing that information</em>.
Calculating the the value of an economy by adding up the value of every good and service produced would lead to overcounting as the value of intermediate goods would be counted twice.
<h3>What is gross domestic product?</h3>
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Intermediate goods are goods that are used in the production of goods and services. For example, flour that is used in the production of bread is an example of intermediate goods. It is not included in the calculation of gross domestic product.
To learn more about GDP, please check: brainly.com/question/15225458
Answer:
The firm's cost of common stock is 13%
Explanation:
Use the following CAPM formula to calculate the cost of common stock
Cost of common stock = Risk free rate + beta x ( Market return - Risk free rate )
Where
Risk free rate = 5.5%
Market return = 11.50%
Beta = 1.25
Placing values in the formula
Cost of common stock = 5.5% + 1.25 x ( 11.50% - 5.5% )
Cost of common stock = 13%
Answer:
According to the straight-line depreciation, this number can be obtained by dividing the difference between an asset's cost and its expected salvage value.
<u>Depreciation</u> = Asset's Cost - Expected Salvage Value ÷ Expected Years of use
Explanation:
In the case of Tops Co., they purchase equipment for $12,000 - $500 of Salvage Value expected ÷ 5 Expected years of use
The estimated depreciation will be $2,300 for 5 years
At the beginning of the third year Tops Co. decided to use the equipment for 6 years and no salvage value.
The remaining purchase value will be $12,000 - $2,300 (x3) = $5,100
Apply again the formula described above and our answer will be:
The revised estimated depreciation is $1,700 for the remaining three years.
Answer:
c
Explanation:
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