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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.

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Coolibah Holdings is expected to pay dividends of $ 1.10 every six months for the next three years. If the current price of Cool
Viktor [21]

Answer:

$25.15  

Explanation:

The price the stock would be sold at the end of the three-year holding period can be computed using excel FV formula stated below:

=fv(rate,nper,pmt,-pv)

rate is the semiannual cost of capital i.e 14%/2=7%

nper is the number of dividend payments over three-year period which is 6

pmt is the amount of semiannual dividend payment

pv is the current stock price

=fv(7%,6,1.1,-22)=$25.15  

6 0
3 years ago
Specialization is important in an economy because it leads to which important economic concept?
rewona [7]

It leads to voluntary exchange.

7 0
3 years ago
Match each type of business insurance with its description.
ser-zykov [4K]

Answer:

insurance against leakage or pilferage of critical and confidential data - data theft insurance

insurance against commercial property damage due to events such as fire, floods, storms, or earthquakes - property insurance

insurance against damage to company vehicles and injury or loss of life due to company vehicles - commercial auto insurance

insurance against severe loss of life or money due to one’s professional negligence or malpractice - professional liability insurance

Explanation:

8 0
2 years ago
Paragraph Styles Rolling Coast Inc. issued BBB bonds two years ago. These bonds provided a yield to maturity (YTM) of 11.5 perce
Karo-lina-s [1.5K]

Answer:

Explanation:

The risk premium two years back = 11.5 - 8.7 = 2.8 %

current risk premium = 2.8/2 = 1.4%

Current risk free bond yields 7.8 %

So Rolling Coast expected rate of interest on bonds = 7.8 + 1.4

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5 0
3 years ago
Suppose that you have been given a summer job as an intern at Issac Aircams, a company that manufactures sophisticated spy camer
ELEN [110]

Answer:PRODUCT COSTS include; (1) Soap and paper towels used by factory workers in a shift(2) Heat, water and power consumed in the factory(3) Materials used for boxing products for shipments overseas (4) Workers compensation insurance for factory employees (5) cost of packaging the company's products(6) Rent on equipment used in the factory (7) Lubricants used for machine maintenance (8) Factory supervisors salaries.

While PERIOD COSTS include (1) Depreciation on sales persons cars (2) Salaries of personnel who work in the finished goods warehouse (3) Advertising costs (4) depreciation on chairs and tables in the factory lunch room (5) Wages of the receptionist in the administrative offices (6) Cost of leasing the corporate jet used by the company's executives (7) Cost of renting rooms at Florida Resort for the annual sales conference.

Explanation:

Product costs are those direct costs incurred in the production of a commodity for example, direct labour, direct materials etc while Period costs is any cost associated with passage of time. It is incurred whether production is in process or not.

6 0
3 years ago
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