Answer: B. Indirect and fixed
Explanation:
Direct costs in the production of 2,000 comforters would be those that were needed to convert the materials needed in the production to finished comforters such as clothing and assembly labor.
A factory supervisor is not directly involved in this process as their job is simply to monitor workers. They are therefore an indirect cost. The salaries do not change based on the level of production so these costs are fixed as well.
Answer:
Payoff per share = $4
Profot pershare = $2
Explanation:
In a call option, the long (the party that buy the put) will have gain on the option when the underlying asset price is higher than the excercise price of that asset (imagine the advantage that you can buy an apple at $10 when its market price is $12). Because the stock price is $44, higher than exercise price of 40, so the company should exercise the call. Total payoff per share is 44 - 40 = $4 (and profit per share = 4 - 2 = $2) .
<em>Note: We dont include premium to buy the call here because the question asking about payoff. We on include premium in calculations when the question is about profit.</em>
<em />
<em />
I believe the correct answer is the first option. The labor supply curve is upward sloping because the opportunity cost of leisure decreases as wages decrease and the opposite of such is true as well. As one work one hour more, one will have less time for other activities. As the work rate increases in value, then the opportunity cost increases as well.