1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dem82 [27]
3 years ago
12

In making rational choices, which of the following is true? a. We respond to marginal benefits and marginal costs. b. We do not

have to account for changes in marginal cost. c. We do not have to account for changes in marginal benefits. d. We have to consider both marginal costs and sunk costs. e. Incentives do not matter.
Business
1 answer:
serg [7]3 years ago
8 0

Answer:

The correct answer is letter "A": We respond to marginal benefits and marginal costs.

Explanation:

Rational Choice Theory assumes an individual will always make prudent and optimal decisions that yield the most benefits. It is the basis of most mainstream economic theories. The rational choice theory considers the marginal benefit compared to the marginal cost of individuals' decisions. It could prevent people from taking an option without analyzing what is most beneficial for them.

You might be interested in
Which of the following statements is true? Group of answer choices An explicit cost is an actual cost; an implicit cost is a the
professor190 [17]

Answer:

Economic costs include both explicit costs and implicit costs.

Explanation:

  • In economics, costs can be in the form of explicit and implicit as implicit costs are opportunity costs and are opportunities for engaging in business. While the explicit costs are accounting costs which are involved in the production of raw matter, wages etc.
7 0
2 years ago
Each month’s ending inventory of finished units should be 60% of the next month’s sales. The April 30 finished goods inventory i
xeze [42]

Answer:

230

Explanation:

Calculation for Champ’s budgeted production (in units) for May

CHAMP INC.

Production Budget For month ended May 31

Sales during the month 230

Less: Opening Stock (138)

(60%*230)

Sales units required to produce in May 92

(230-128)

Sales during June 230

Add: Closing stock of May 138

(230*60%)

Budgeted production (in units) for May: 230 (138+92)

Therefore Champ’s budgeted production (in units) for May will be 230

8 0
2 years ago
Both the agent and seller just signed the listing agreement. What must the licensee give to the seller now?
maw [93]

Answer:

Working with real estate agent brochure and agreement form.

6 0
3 years ago
When boating at night, what does a single white light on a boat tell you?
aniked [119]
The white light shows the location of the boat and is required on all motor powered boats
Red and green tell what direction the boat is facing
6 0
2 years ago
Read 2 more answers
The following transactions apply to Ozark Sales for 2016:
-Dominant- [34]

Answer and Explanation:

The preparation of the income statement for 2016 is shown below:-

                                 OZARK SALES

                               Income Statement

             For the Year Ended December 31, 2016

Sales revenue                             $510,000

Cost of goods sold                      $330,000

Gross margin                               $180,000

Expenses  

Operating expenses    $78,000  

Warranty expenses     $10,200  

Total operating expenses          $88,200

Operating income                       $91800

Interest expense                         $667

Net income                                  $91133

b. The preparation of balance sheet for 2016 is shown below:-

                           OZARK SALES

                           Balance Sheet

                       As of December 31, 2016

Assets  

Cash                                              $284,600

Merchandise inventory                $50,000

Total assets                                   $334,600

Liabilities  

Accounts payable $130,000  

Sales tax payable  $8,800  

Notes payable        $50,000  

Warranties payable $4,000  

Interest payable      $667  

Total liabilities                      $193,467

Here, we added all liabilities to reach the total liabilities

Stockholders' equity  

Common stock      $50,000  

Retained earnings $91,133  

Total stockholders' equity               $14,1133

Total liabilities and stockholders'

equity                                                  $334,600

c. The Preparation of statement of cash flow is shown below:-

                                   OZARK SALES

                                Statement of Cash Flows

                       For the Year Ended December 31, 2016

Cash flows from operating activities:  

Inflow from customers               $510,000  

Inflow from sales tax                  $40,800  

Outflow for expenses                 -$84,200  

Outflow for sales tax                -$32,000  

Outflow to purchase inventory -$250000  

Net cash flow from operating activities      $184,600

Cash flows from investing activities

Cash flows from financing activities:  

Inflow from loan                           $50,000  

Inflow from stock issue                $50,000

Net cash flows from financing activities    $100,000

Net change in cash                                      $284,600

Plus: Beginning cash balance                      0

Ending cash balance                                    $284,600

5 0
3 years ago
Other questions:
  • Which analytical tool determines the relative attractiveness of various strategies based on the extent to which key external and
    9·1 answer
  • At Ava's second birthday, her grandparents wanted to pool their money to buy U.S. Treasury bonds that would ultimately provide $
    7·1 answer
  • Which of the following types of financial aid do not require you to pay the money back?
    14·1 answer
  • The more precisely defined the target market is, the _____ the numbers are to estimate.
    9·2 answers
  • Maddie's shoe store donated hundreds of pairs of shoes to needy children at an inner city school. A news crew reported on the do
    5·1 answer
  • There are some 200 economic integration agreements around the world today, far more than a few years ago.NAFTA, EU, Asean etc. V
    12·1 answer
  • 1960 the per capita GDP of Hong Kong was substantially less than that of Argentina and Venezuela. By 2005, the per capita income
    8·1 answer
  • Name one form of collusion
    15·2 answers
  • Is gross profit or net profit more important to consider when you're deciding how successful and profitable a company is? Why? E
    15·2 answers
  • What's your fav video game and why
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!