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Ilya [14]
3 years ago
10

Eric has plans to go to a play and already has a $50 nonrefundable, nonexchangeable, and nontransferable ticket. Now Ginny, whom

Eric has wanted to date for a long time, asks him to a concert. Eric would prefer to go to the concert with Ginny and forgo the play, but he doesn't want to waste the $50 he spent on the play ticket.
From the perspective of an economist, if Eric decides to go to the concert with Ginny, what has he just done?

a.Made a choice that was not optimal

b.Correctly ignored a sunk cost

c.Incorrectly allowed a sunk cost to influence his decision
Business
1 answer:
KengaRu [80]3 years ago
7 0

Answer:

Correctly ignored a sunk cost.

Explanation:

In economics a sunk cost is one that an individual has already paid for and cannot recover. For example when payment is made for rent it is no longer recoverable.

In this instance Eric has already bought a $50 ticket that is nonrefundable, nonexchangeable, and nontransferable. This is a sunk cost.

Eric wants to go to the concert with Ginny who he wanted to date for a long time.

He will correctly ignore the sunk cost of going to the play because any more time spent on the play will not help recover the $50 already spent.

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Nikhil is a design manager for a production company. He independently assigns teams, chooses projects, researches trends, and is
Papessa [141]

Answer: Based on this description, it's safe to say that Nikhil's job is high in c. autonomy.

Explanation:

What is meant by an autonomy character?

This is a person who is able to decide or make decisions without being forced to do so they are independent individuals who can take control of their own tasks at a very high standard level. They are professionally capable of using their freedom to make exceptional decisions that are well thought of and of high standard.

Nikhil works independently , is able to distribute the work to the team and is able to provide proper standard report every month without being told or forced to do so this qualifies under autonomy.

6 0
3 years ago
Explain what lower of cost or market means in regards to reporting merchandise inventory on the balance sheet.
Degger [83]

Answer and Explanation:

Inventory is an asset and is posted on the asset side of the balance sheet. As per accounting standards regarding inventory valuation, it can be either valued at historical cost or at market price, whichever is lower.

Historical cost is the cost at which asset was acquired. Market price is the price which would be received if the asset is replaced as on the date on which balance sheet is prepared. Inventory is valued at lower of the above mentioned costs.

4 0
3 years ago
At the beginning of a year, a company predicts total direct materials costs of $1,010,000 and total overhead costs of $1,270,000
marin [14]

Answer:

1.267 = Overhead Rate

Explanation:

<em>As general approach,</em> the manufacturing rate, along with any rate is done by dividing the cost by a cost driver.

\frac{Cost\:Of\: Manufacturing\: Overhead}{Cost\: Driver}= $Overhead \:Rate

In this case teh cost is the manufacturing overhead and the cost driver the direct materials cost:

\frac{1,270,000}{1,010,000}= $Overhead Rate

<em>Using Direct Materials cost, the rate would be:</em>

1.257425743= $Overhead Rate

3 0
3 years ago
Lili spent $120 on a new sweater rather than using this money to buy her personal finance textbooks. The cost of doing without t
Serjik [45]

Answer:

opportunity cost

Explanation:

The opportunity cost is the cost that is incurred for purchasing any other thing in place of one thing or we can say it is a sacrification done to purchase another thing

Here in the question it is mentioned that the Lil spent $120 for purchasing a new sweater instead of buying her finance textbooks also the cost of buying the sweater is known as the non doing textbooks cost

So here it is a opportunity cost

5 0
3 years ago
Using email for ____ purposes has many benefits, including low cost, immediate communication, interactivity, and the ability to
Maksim231197 [3]

Answer: a. marketing

Explanation:

Using email for marketing purposes has become a very effective method of advertising since the advent of the internet and subsequently email services. It is quite low cost and yet has a wide coverage.

It also enables immediate communication that can be quite interactive thereby ensuring that customers can be personally catered for. It also allows for creativity in marketing as a multitude of methods can be used ranging from newsletters to posters.

6 0
3 years ago
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