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4 years ago

The term "opportunity cost" is best defined as:

Business

1 answer:

Wittaler [7]4 years ago

8 0

Answer:

4. the benefit associated with a rejected alternative when making a choice.

Explanation:

Opportunity costs refer to the foregone benefit as a result of choosing one option over the another. It is the value of the missed best alternative. For example, with $100, one can either watch a movie or have a meal. If having a meal is chosen, the joy derived from watching the movie is the opportunity cost.

Opportunity cost is occasioned by the scarcity of resources, including time. Individuals and firms have to make economic choices every day. The sacrificed benefit in every decision is the opportunity cost.

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if the required reserve ratio is 10 percent the banking system currently has excess reserves equal to

prisoha [69]

Answer:

Experts are tested by Chegg as specialists in their subject area. We review their content and use your feedback to keep the quality high. Transcribed image text: If the required reserve ratio is 10 percent, the banking system currently has excess reserves equal to: $10 billion.

Explanation:

5 0

3 years ago

Which of the following is not a factor of production?

vladimir1956 [14]

Hi there

The correct answer should be : C

I hope that's help:)

6 0

3 years ago

Local Co. has sales of $ 10.7 million and cost of sales of $ 5.9 million. Its selling, general and administrative expenses are

storchak [24]

Explanation:

The computation is shown below:

a. The gross margin is

Gross margin = (Sales revenues - Cost of sales) ÷ (Sales revenues) × 100

= ($10.7 million - $5.9 million) ÷ ($10.7 million) × 100

= 45%

b. The local operating margin is

= (Operating income ÷ Sales) × 100

where,

Operating income is

= (Sales - cost of sales - selling, general & administrative expenses - research & development - Depreciation & Amortization) ÷ (Sales revenue) × 100

= ($10.7 million - $5.9 million - $0.55 million - $1.2 million - $1.4 million) ÷ ($10.7 million) × 100

= ($1.65 million) ÷ ($10.7 million) × 100

= 15.42%

c. Net profit margin

= (Net profit ÷ Sales) × 100

where,

= (Sales - cost of sales - selling, general & administrative expenses - research & development - Depreciation & Amortization) × (1 - tax rate) ÷ (Sales revenue) × 100

= ($10.7 million - $5.9 million - $0.55 million - $1.2 million - $1.4 million) × (1 - 0.35) ÷ ($10.7 million) × 100

= ($1.0725 million) ÷ ($10.7 million) × 100

= 10.02%

3 0

3 years ago

Which of these statements is one of the principles of a free-market system?

scoray [572]

Answer:

C. Public goods must be provided to secure a high standard of living.

Explanation:

Public goods refer to commodity or service that cannot be avoided by individuals and is unprofitable to be produced and sold by firms. The government is the sole provider of such services. For example roads and security are better provided by government.

8 0

4 years ago

Chong Corporation recently prepared a manufacturing cost budget for an output of 50,000 units, as follows: Direct materials $100

KATRIN_1 [288]

Solution and Explanation:

The following table has been made in order to find out the total variance cost that has been incurred and the total cost

Particulars Cost formula based Flexible budget Actual Variance

on 50000 units on the basis of

60000 unit

Direct materials $2 120000 $110000 10000 F

The direct labour $1 60000 60000 0

Variable overhead $1.5 90000 100000 10000 U

Fixed overhead $100000 100000 97000 3000 F

The total cost 370000 367000 3000 F

Where F stands for – favourable and U stands for unfavourable

The total variance cost after the above calculations is = $3000 F

7 0

3 years ago