Answer:
False
Explanation:
The contribution margin will be higher for the company with the highest fixed expenses. Contribution margin = selling price - variable cost
For example:
Company A Company B
sales price per unit $100 $100
total costs per unit $80 $80
variable costs per unit $50 $40
<u>fixed costs per unit $30 $40 </u>
contribution margin $50 $60
Answer:
The options for this question are the following:
A. implicit cost
B. accounting cost
C. explicit cost
D. pure economic cost
E. positive economic rent
The correct answer is A. implicit cost
.
Explanation:
Implicit cost is an economics term that refers to the costs of a business that do not require direct spending but, instead, the result of a loss of potential revenue. This concept can have important ramifications for companies and entrepreneurs when they decide how to divide tasks between their workforce and how much they charge for their services. It is also an important concept for individuals to understand when choosing the best time budget for a variety of projects.
The implicit cost of some companies is generally a result of the amount of time it takes a person to complete the business and the time value of that person. For example, if someone hires an independent contractor to complete a plumbing job, that contractor must charge enough to cover their explicit and implicit costs in order to make a profit. The explicit costs will be the cost of the necessary materials, which is quite easy to calculate.
-Sensorimotor. Birth through ages 18-24 months.
-Preoperational. Toddlerhood (18-24 months) through early childhood (age 7)
-Concrete operational. Ages 7 to 11.
-Formal operational. Adolescence through adulthood.
Answer:
$55,200
Explanation:
Consumption = 6000 bottles
Cost per bottle = $9
Consumption Cost = 6000*$9 = $54,000
No of crates = 6000/100 = 60 crates
Cost pet crate = $20
Crate cost = $1,200
Total annual cost = Consumption Cost + Crate cost
Total annual cost = $54,000 + $1,200
Total annual cost = $55,200
So, the total annual cost to supply vodka from their current supplier is $55,200
Answer:
B. negative externality
Explanation:
As it is late-night the sound of the traffict will bother to sleep for me and the entire area. This cost is not considered when performing the financial decistion but it is there as the utiliy from the conumer in that area decrease as a result of the labor in the highway to steer traffic into here.
As a result of these externality the social optimall decreases for the time the road construction end.
