Answer: Opportunity cost is the loss of potential gain from other alternatives when one alternative is chosen.
Explanation: Here is some examples :)
(1) The opportunity cost of the funds tied up in the one's own business is the interest (or profits corrected for differences in risk) that could be earned on those funds in other ventures.
(2) The opportunity cost of the time one puts into his own business is the salary he could earn in other occupations (with a correction for the relative psychic income in the two occupations).
(3) The opportunity cost of using a machine to produce one product is the earnings that would be possible from other products.
I hope this helps!
Answer:
Yes the statement is correct.
Explanation:
The statement is given by Matt Cheuvrant. In business the statement is absolutely correct that you can not satisfy the need of all the customers. A business cannot offer a product at less than its cost if a customer cannot afford it. Also an organization cannot start manufacturing a product because one customer demands it. If the company decides to satisfy all his customers by offering a large variety of products it may result in establishing in-house competition resulting in declining profits from both the products. If the company tries to give everything to every one this enhances its risk of failure resulting nothing in its own hands.
Businesses should focus on a single product and try to create a niche market. The product should be unique and its features should be extensively different from the other competitive products available in the market. This creates heavy switching cost to customers which ensures the business that customers will retain loyal to it. You can everything for few customers. They will not want to leave you because of your product specific features that are not available in the market.
Answer:
9.61 years
Explanation:
For this question , we use the NPER formula that is presented in the attached spreadsheet
Given that,
Present value = $12,000
Future value = $30,000
Rate of interest = 10%
PMT = $0
The formula is shown below:
= NPER(Rate;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the answer is 9.61 years
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There are two main different methods of pricing. One is cost based pricing and the other is the market based pricing. The cost based pricing involves adding a profit margin (Mark-up) to the costs. In the given the case, mark up is $0.50 per item and the cost is $1.25 per item. Hence the selling price of the sports drink would be $1.75 ($1.25+$0.5)