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Mnenie [13.5K]
3 years ago
6

Van has plans to go to an opera and already has a $100 nonrefundable, nonexchangeable, and nontransferable ticket. Now Amy, whom

Van has wanted to date for a long time, asks him to a party. Van would prefer to go to the party with Amy and forgo the opera, but he doesn't want to waste the $100 he spent on the opera ticket.
From the perspective of an economist, if Van decides to go to the party with Amy, what has he just done?

1. Incorrectly allowed a sunk cost to influence his decision

2. Made a choice that was not optimal

3 Correctly ignored a sunk cost
Business
1 answer:
yan [13]3 years ago
4 0

Answer:

The right choice is "3 Correctly ignored a sunk cost"

Explanation:

As the ticket to the opera was already bought and it is nonrefundable, nonexchangeable, and nontransferable; whether Van decides to go to the opera or to go to the party with Amy; he has incurred $100 cost of ticket which can not be recovered in any manner.

The ticket cost in this question is categorized as sunk cost - cost that incurred in the past and will be remained the same regardless of any future actions. Thus, this type of cost should be ignored when making decision for the future.

So, "3 Correctly ignored a sunk cost" is the correct choice.

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As a business person planning to open a new small business, you know that the business plan should not contain
tia_tia [17]
As a business person planning to open a new small business, you know that the business plan should not contain pages and pages of detailed facts and figures.

Hope this helps :)
5 0
3 years ago
a) From a one-way street, you USUALLY make a left turn from: the left curb lane. b) any lane if it is safe to do so. c) the two
7nadin3 [17]

Answer:

c

Explanation:

3 0
3 years ago
a call option on Jupiter Motors stock with an exercise price of $75 and one-year expiration is selling at $4. A put option on Ju
bogdanovich [222]

Answer:

$75.01

Explanation:

Given:

  • Call price (C): $4
  • Put price (P): $2.5
  • risk-free rate (r): 2% = 0.02
  • Time: 1 year
  • Exercise price (K): $75

Let Share price: S_{0}

As per put-call party, we have the following equation:

  • C + Ke^{-rt} = P+S_{0}

<=> S_{0}  = C + Ke^{-rt} - P

<=> S_{0}  = 4 +  75*e^{-0.02*1} - 2.5

<=> S_{0}  = 1.5 + 73.51 = $75.01

So the the stock price is $75.01

6 0
4 years ago
Describe a real or made up but realistic situation that could cause you or someone you know to have to use money from a financia
IceJOKER [234]

Answer:

There are a thousand and one scenarios that would make me break my piggy bank.

Explanation:

If I came across a  very good deal, I'd draw from my financial reserve and empty it if need be to take advantage of such an opportunity.

Imagine for instance that a 2020 Chevrolet Silverado 2500HD truck which normally goes for about $34,000 is suddenly available for whatever legitimate reason for about $10,000 and its only 3 months old without dents or any mechanical fault, perhaps the owner needs cash for something equally more profitable to them, I'd grab the opportunity to buy it and resell at a higher price in order to turn a decent profit.

For a car that has only been used for three months, I can resell easily and very quickly at half the original price making a $7,000 in profit or I decide to hold on a little while can actually sell at a much higher price for nearly $30,000 perhaps one or two thousand dollars less and still make an extremely good profit.

Cheers

7 0
3 years ago
Susan fires her Employee/Agent Martin. They had a disagreement and both decided to part ways. However, Martin had a sour taste i
scZoUnD [109]

Answer:

in this scenario, susan and sam has not done any wrong things.

but Martin has manipulated sam to take revenge from susan for firing him.

so in this case, no susan is not obliged to pay. she can take action against martin and after proving in a court of law about martin's manipulation, he will be liable to pay.

Explanation:

5 0
4 years ago
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