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dalvyx [7]
3 years ago
14

If a family spends its entire budget in a given time frame, the family can afford either 80 cans of beans or 45 frozen dinners.

Assuming the family spends its entire budget on just these two goods, what is the opportunity cost of a can of beans in terms of frozen dinners in the time frame? (Round your answer to two decimal places.)
Business
1 answer:
ivolga24 [154]3 years ago
5 0

Answer:

0.56

Explanation:

Opportunity cost refers to the alternative forgone from a list of preference. It is a concept in economics developed as a result of the scarce resources available to satisfy unlimited wants.

Since the family can afford either 80 cans of beans or 45 frozen dinners.

it means that for every 1 can of beans purchased, 45/80 frozen dinner will be let go or not be purchased. Also, for unit of frozen dinners purchased, the family sacrifices the purchase of 80/45 cans of beans.

Hence the opportunity cost of a can of beans in terms of frozen dinners in the time frame

= 45/80 frozen dinner

= 0.5625

to 2 decimal place = 0.56

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The before-tax cost of debt is adjusted for tax in the computation of weighted average cost of capital.

The correct answer is  D

Explanation:

In the calculation of weighted average cost of capital, the before tax cost of debt is adjusted for tax so as to obtain the after-tax cost of debt. Cost of equity and cost of preferred stocks will not be adjusted for tax.

6 0
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7) Mr. Smith acquired a property consisting of one acre of land and a two-story building five years ago for $100,000. He also ob
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8 0
3 years ago
When the consumer price index falls, the typical family has to spend fewer dollars to maintain the same standard of living. True
MariettaO [177]

Answer:

True

Explanation:

Consumer price index measures the changes in price level of a basket of goods.

If consumer price index falls if means price level has fallen , goods become cheaper and the same amount of money can buy more quantities of goods and services.

Conversely if consumer price index rises, price level has increased, goods and services become more expensive and more amount of money would be needed to maintain the same level of consumption.

CPI is calculated as cost of basket of goods in a given year / cost of basket of goods in a base year

I hope my answer helps you

7 0
3 years ago
Purchased goods for $4,100 from Diamond Inc. with terms 2/10, n/30. 5 Returned goods costing $1,100 to Diamond Inc. for credit o
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Answer: $3,940

Explanation:

Purchase from Diamond

The company received a discount of 2% because they paid within 10 days as per the terms of the sale.

Cost of inventory from Diamond:

= (Cost of goods - Returns) * (1 - 2%)

= (4,100 - 1,100) * 98%

= $2,940

Purchase from Club

Discount period expired so the full $1,000 is paid.

Total inventory cost:

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4 0
2 years ago
Bird Corp.'s trademark was licensed to Brian Co. for royalties of 15% of the sales of the trademarked items. Royalties are payab
Romashka-Z-Leto [24]

Answer:

a. $13,000

Explanation:

Calculation for what royalty revenue should be

First step is to find the estimated amount for the second half of the year

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Now let Compute for the total royalty revenue

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Total royalty revenue for 20X5=$13,000

Therefore the royalty revenue should be $13,000

6 0
2 years ago
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