Answer:
The most likely explanation for the relatively small opportunity cost that the economy incurs as a result of increasing production of fish from 0 to 15 tons is that the economy will lose some of the benefits it derives from the production of cars now that more resources have been committed to the production of fish. It is like a question of not being able to "eat your cake and have it." Something must give way.
Opportunity cost is an economic cost that an entity or individual bears when it forgoes one option in preference to another. Once there is a choice between two options, economists will always recognize the forgone benefits from the other option a consequence of the loss.
Explanation:
When economists refer to the “opportunity cost” of a resource, they imply that the value of the next-highest-valued alternative resource will be lost. This means that a cost is incurred by not enjoying the benefit associated with the best alternative choice. A consideration of opportunity cost is, therefore, an assessment of the relative risk of each option vis-a-vis its potential returns.
Answer:
Net present value (NPV) &
Internal rate of return (IRR)
investopediacom
Answer:
Moral Hazard
Explanation:
Moral hazard is a situation which involves two parties, one party gets involved in a risky event because he knows that it is protected against the risk and that the other party will bear the cost and consequences of his actions if there be any loss. It arises when both the parties have incomplete information about each other.
In the financial market, there is high risk that a borrower may do undesirable things and may not pay back if he knows that when he defaults, his guarantor might will pay. This can make him to act with reckless abandon and in a riskier way.
Because Hamon in the Question got insurance that is worth twice his restaurant, he became careless in the management of his restaurant because he believes that if there be any loss, insurance will pay. This is called Moral Hazard in Business.
I think the answer would be false because Pinterest is a site for ideas and inspiration so therefore it would most likely inspire and influence ideas for many people.
