Answer:
Accounting costs $145,000
Implicit costs $75,000
Opportunity costs $220,000
Explanation:
What her accounting cost will be during the first year of operation.
Based on the information given we were told that the annual overhead costs and operating expenses amounted to the amount of $145,000 which means that the amount of $145,000 will be the ACCOUNTING COSTS
Her IMPLICIT COSTS will be the amount of $75,000 which is the amount she earn in her current job per year.
Her OPPORTUNITY COSTS be the addition of both her Her accounting cost and implicit costs
Hence,
Opportunity cost=$145,000+$75,000
Opportunity cost=$220,000
Answer: Only Material costs are relevant
Explanation:
The material cost under alternative X is given as $41000 while under alternative Y is given as $59000.
The processing cost under alternative X is given as $45000 while under alternative Y, the processing cost is given as $45000 as well.
Then, we can deduce that only the materials costs are relevant since the processing costs are thesame.
Answer: B - Companies are price-takers when they have little or no control over the prices of their products or services.
Explanation:
Price takers are firms that do not have control or do not set the prices for their goods or services. They take the price set by the market.
Price takers operate in perfectly competitive markets. Price takers have close substitutes for their goods and services.
Price makers are firms that have the ability to influence the price of their goods or services.
They are usually monopoly firms with no close substitutes for their goods or services.
<span>The correct option is C. Money as a unit of measurement makes it easier to have a better exchange rate withe other currencies. Which means that currencies from different countries can easily be exchange between two people, this brings an element of global trade into existence.</span>
