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2 years ago

When the opportunity cost of producing a good rises as you produce more of it, you experience:_______.

Business

1 answer:

KiRa [710]2 years ago

6 0

Answer:

e. increasing relative costs.

Explanation:

The law of increasing relative costs is a principle in economics which states that, the opportunity cost of producing a good would always increase as more of the product is being produced.

Hence, when the opportunity cost of producing a good rises as you produce more of it, you experience increasing relative costs because the factors of production (capital, labor and land) are now at a maximum level of output.

Furthermore, the opportunity cost, also known as the alternative forgone, can be defined as the value, gains or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.

Simply stated, it is the cost of not enjoying the benefits, gains or value associated with the alternative forgone or best alternative choice available.

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Refer to the financial statements of Burnaby Mountain Trading Company. The firm's asset turnover ratio for 2017 is _________. (P

Aleonysh [2.5K]

Answer:

1.69

Explanation:

asset turnover ratio = net sales / average assets

I looked up the missing information and found the following:

total assets year 1 = $4,000,000

total assets year 2 = $4,300,000

net sales year 2 = $7,000,000

average assets = ($4,000,000 + $4,300,000) / 2 = $4,150,000

asset turnover ratio = $7,000,000 / $4,150,000 = 1.6867 = 1.69

The higher the asset turnover ratio, the more efficient a company is. Therefore, a higher asset turnover ratio is always better although there is no fixed parameter.

7 0

3 years ago

The manager of the customer service division of a major consumer electric company is interested in determining whether the custo

Elanso [62]

Answer: Stratified random sampling

Explanation:

Given : The manager of the customer service division of a major consumer electric company is interested in determining whether the customers who have purchased a Blu-ray player made by the company over the past 12 months are satisfied with their products. If there are 4 different brands of Blu-ray players made by the company.

The best sampling strategy which we can use is stratified random sampling because it is not much costly and also it induces the efficiency . We can me different strata according to the 4 brands , then we can randomly select participants for the sample.

Stratified random sampling is a method of probability sampling in which a researcher divides the entire population into multiple homogeneous groups known as strata and then he randomly select an sample members from each strata for research .

4 0

2 years ago

The international zoological club publishes a monthly magazine for zoology enthusiasts. members are required to pay an initial f

Ainat [17]

The answer is locking in customers

4 0

3 years ago

“A business organization requires both long term and short term capital which can

Anna007 [38]

The example of ownership capital is : Shares

Shares determine that you have a part of percentage of the company (you will also get part of its income)

Example of Borrowed capital is : Leasing.
Leasing is a rental agreement in which you can borrow goods that you can use for your production process

hope this helps

5 0

3 years ago

Consider two markets: the market for motorcycles and the market for pancakes. The initial equilibrium for both markets is the sa

Taya2010 [7]

Answer:

1. PES for pancakes is 2.45

2. Supply in the market for motorcycles is less elastic than supply in the market for pancakes.

Explanation:

Hi :)

I feel like part of the question is missing but i was able to find it elsewhere and show you:

1. How to calculate PES using mid-point formula

2. PES for both motorcycles and pancakes

3. Which is more elastic

...

Price elasticity of supply is the responsiveness of quantity supplied to a change in price. it is calculated by dividing the % change in quantity supplied by the % change in price. Generally, it can be of two types:

Price Elastic: Change in quantity supplied is higher than change in price. PES > 1

Price Inelastic: Change in quantity supplied is lower than change in price. PES < 1

When calculated using the mid-point formula, this is the formula used:

(Q2 - Q1) / [(Q2 + Q1)/2]

(P2 - P1) / [(P2 + P1)/2]

1. We will now substitute the actual values of pancakes in place after identifying them from the question:

Equilibrium Quantity - 27 (Q1)

New Quantity - 109 (Q2)

Equilibrium Price - $6.50 (P1)

New Price - $10.75 (P2)

(109 - 27) / [(109 + 27)/2]

(10.75 - 6.50) / [(10.75 + 6.50)/2]

1.21

0.493

Therefore, PES for pancakes is 2.45 (approx. two decimal places) suggesting it is price elastic.

2. In order to check whether motorcycles or pancakes are more elastic, we calculate the PES of motorcycles using the same method:

Equilibrium Quantity - 27 (Q1)

New Quantity - 61 (Q2)

Equilibrium Price - $6.50 (P1)

New Price - $10.75 (P2)

(61 - 27) / [(61 + 27)/2] 

(10.75 - 6.50) / [(10.75 + 6.50)/2]

0.77

0.493

Therefore, PES for motorcycles is 1.56 (approx. two decimal places) suggesting it is price elastic. However, it is less price elastic than PES for pancakes.

One reason for this could be production time. Pancakes can be produced much faster than motorcycles. Therefore, it is more flexible to price changes.

5 0

3 years ago