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balu736 [363]
3 years ago
13

Sarah has a certain amount of money budgeted for tea and snacks during the work week, and she always aims to spend her entire bu

dget. If she spends her entire budget on tea, she can afford 40 cups of tea. If she spends her entire budget on snacks, she can afford 8 snacks. What is the opportunity cost of a snack?
Business
1 answer:
Lera25 [3.4K]3 years ago
4 0

Answer: 5 cups of tea

Explanation:

Opportunity cost is what an individual, firm or government forgoes in order to get something else. For example, an individual might have $2. A pen costs $2 likewise a notebook. If the person decides to buy the pen, the opportunity cost is the notebook which he or she did not buy.

With the money Sarah has, spending her entire budget will give her 40 cups of tea or 8 snacks. This implies that for 1 snack, the opportunity cost is (40/8) = 5 cups of tea

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Pick Industries produces plastic toothpicks that it sells to distributors in the Southwest. During the early 1990s, the price of
Cerrena [4.2K]

Answer:

Other things equal, the fall in the price of plastic would shift Pic's marginal cost curve to the right. To maximize profits, Pic should increase its output. Since other firms in the industry do not enjoy the reduction in marginal costs, the market supply curve would not change and the market price of toothpicks would remain unchanged. Pic Industries would enjoy higher profits in the short-run

4 0
3 years ago
Jim and Lisa own a dog-grooming business in Champlain, New York, called JL Groomers. There are many buyers and many sellers in t
Ganezh [65]

Answer:

$22

Explanation:

JL Groomers will maximize its accounting profit while taking to 0 its economic profits when the marginal revenue = marginal costs.

Economic profits are not the same as accounting profits, since they include the opportunity costs of investing the money somewhere else. That is why in the long run firms are not able to make economic profits since as long as they exist, new competitors will enter the market. But on the short run, firms are able to make economic profit, but by doing so, they will not be maximizing their accounting profit.

Economic profit = accounting profit - opportunity costs

Opportunity costs are the extra costs associated or benefits lost from choosing one activity or investment over another one.

6 0
3 years ago
For each of the following situations, identify the type of form to be filed with the SEC for disclosure purposes (2 points): (A)
oee [108]

Answer:

1. Form 8-K : A unique or significant happening.

2. Form 10-K: Annual information required by Regulation S-X.

3. Form 8-K: Changes in control of the registrant.

4. Form 10-Q: Interim financial statements.

5. Not required: Fourth quarter income statement.

6. Form 8-K: Bankruptcy.

7. Form 10-K: Annual information required by Regulation S-K.

8. Form 10-Q: Income statement for the current quarter, year-to-date, and comparative periods in the previous year.

9. Not required: Changes in bookkeeping staff.

10. Form 8-K: Changes in the registrant's independent auditor.

Explanation:

The SEC, an acronym for Securities and Exchange Commission was created under the Securities Exchange Act of 1934. The Act empowered the SEC to require registration of securities, security exchanges, and reporting by publicly owned firms.

Some of the forms to be filled as required by the United States of America, Securities and Exchange Commission (SEC) includes;

1. Form 10-K.

2. Form 10-Q.

3. Form 8-K.

5 0
3 years ago
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It's true investing in stocks and bonds is risky because it is possible to lose all or part of your principal.

Investors are unlikely to demand the same returns on their stock investments year after year. Market yields can be expressed as the sum of government bond yields and market risk premiums.

Yes. If you sell bonds before their maturity date, you may incur a loss as the sale price may be lower than the purchase price. Also, if an investor purchases a bond and the company faces financial difficulties, the company may not be able to return all or part of the original investment to the bondholders.

Learn more about bonds at

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8 0
2 years ago
Which statement best summarizes the law of demand ?
Verizon [17]

Answer:

The answer is D

Explanation:

6 0
3 years ago
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