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zubka84 [21]
3 years ago
7

Economists say that individuals make decisions at the margin. What does its menas?

Business
1 answer:
leva [86]3 years ago
4 0

Answer:

When Economists say that humans make decisions at the margin they mean that decisions are made on the basis of the cost and benefit of getting an additional unit of a good/ service.

Marginal benefit refers to the additional utility that we will derive from consuming one extra unit of a good or service and factors in heavily into our decision making. We usually accept a decision if the Marginal benefit is higher or equal to the Marginal cost ( cost of the additional unit) of the good/service.

If the Marginal Cost is instead higher, the decision would most probably be cancelled.

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Exclude people from your property

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For a Windows laptop, what is the best way to save power when the computer will not be used for an extended period?
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b turn off by power button

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Using a company's cost of capital to evaluate a project is:
yaroslaw [1]

Answer: Option C  

             

Explanation: In simple words, cost of capital refers to the amount of return that the investor are expecting for tasking the risk of investing in the company. In other words, it is the amount the company has to offer in return to the investors for attaining the capital from the market.

Often the cost of capital is used to evaluate the profitability of the project, that is, if the return in project is higher than the cost of financing it should be taken by the company.

However there are other component while evaluating a project that is risks associated with it. Risk of every projects is different from the other and hence only those project should be evaluated on the basis of cost of capital that is similar to the company's average.

6 0
3 years ago
A company purchases a machine for $12,000. The estimated residual value is $4,000. The machine has a useful life of 5 years, and
tatuchka [14]

Answer:

$2,400

Explanation:

The computation of the depreciation expense under the activity-based depreciation method is shown below:

= (Original cost - residual value) ÷ (estimated production units)

= ($12,000 - $4,000) ÷ (20,000 units)

= ($8,000) ÷ (20,000 units)

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Now for the first year, it would be

= Production units in first year × depreciation per unit

= 6,000 units × $0.4

= $2,400

8 0
3 years ago
Club Med Inc. talks to its present and potential customers to assess their needs for its products. Then it develops products to
spayn [35]

Answer:

marketing concept.

Explanation:

The above is marketing concept because it involves all actions taken to draw the attention of people towards the product offered by a business. The product so offered can be a physical good such as sale of home appliances or services to be rendered. Example of marketing concept are advertising a product either in the television or radio or on bill boards.

Marketing concept makes use of data to concentrate on the desires of consumers by developing products that would suit those need and also accomplish the organization goals of satisfying their customers needs.

7 0
3 years ago
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