Answer:
Opportunity costs are defined as the additional costs or benefits lost from choosing one activity or investment over another alternative. It is a relative concept because you cannot be 100% sure that the other investments or activities would have yielded a specific gain.
For example, when you calculate the economic cost of starting your own business, you consider your current salary as an opportunity cost. But what happens if you get fired (or the company closes), your opportunity cost would have been $0? Or how can you exactly measure your future salaries? Maybe in a couple of years you get promoted to manager, or maybe not?
The same applies to economies, since the opportunity cost of producing certain tradable goods is not always fixed, it might decrease or increase due to productivity or efficiency changes. But in order to calculate or determine we must include the most probable option.
In microeconomics, a strictly convex production possibilities frontier function must include a combination of both goods. In strict convexity, the second derivative f''(x) ˃ 0, so the PFF curve cannot be straight, it must have a slope.
When we calculate the opportunity costs of PPF, we usually try to determine which product has the lowest opportunity cost, but that is not an interior solution because both goods are not being produced (the curve is not strictly convex). On a strictly convex curve, as you approach the extremes the opportunity cost of producing one good is high, but on the center the opportunity cost is much lower.
Answer:
Clem should specialise in wheat production because he has higher profits there
Explanation:
Clem needs to make a decision on the product that will maximise his profits and not just the number of units of products he can manufacture.
If he produces only wheat he will have profit of 75 bushels * $2 = $150
If he produces only barley his profit will be 125 bushels * $0.80 = $100
This shows that wheat is more profitable for Clem. Even though he can produce more units of barley.
Depth micrometers can easily be used to measure a wide range of sizes, by simply changing spindle. A micrometer is a very accurate tool for measuring a variety of items. It works by measuring the distance between a stationary surface and a hard stop (anvil) (spindle).
A thimble's rotation moves the spindle toward or away from the anvil. An object is put between the anvil and the spindle of micrometer, and the thimble is spun to gently squeeze the object in between the two faces in order to take a measurement. The scale is read and a decimal measurement is obtained once the object has been squeezed.
To learn more about micrometer, click here
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The answer to your question is,
B) Demand has increased.
When demand increases, so does price and same with quantity.
-Mabel <3
Answer:
$464,968.53
Explanation:
Calculation to determine how large must the lump sum be to leave him as well off financially as with the annuity
Using Financial calculator to find the PRESENT VALUE (PV)
N 15 years
I/YR 7.5%
PMT $49,000 per year
FV $0
Hence;
PV= $464,968.53
Therefore how large must the lump sum be to leave him as well off financially as with the annuity is $464,968.53