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d1i1m1o1n [39]
3 years ago
14

The house that Jeanne inherited from her mother can rent for $1500/month, but Jeanne decides to allow her brother to stay there

for only $500 per month. This decision carried with it a
a) $500 per month monetary cost but a $1500 per month opportunity cost. b) zero monetary cost but a $1000 per month opportunity cost. c) $1000 per month monetary and opportunity cost.
Business
1 answer:
OLga [1]3 years ago
4 0

Answer:

The correct option is B,zero monetary cost but a $1,000 per month opportunity cost

Explanation:

Monetary cost also known as explicit cost is the actual costs incurred in running a business.But the business in this case is renting of the property,frankly speaking, Jeane has not incurred any cost in her property business,hence monetary cost is zero.

Opportunity is the cost or benefits from alternative course of action. Jeane not renting out the property on commercial basis is the alternative course of action in this case.Since the commercial letting gives $1500 and the letting to her brother gives $500, the difference between the two rents is $1000 which is benefits forgone from letting the house to her brother,that is the opportunity cost.

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government regulation is the most important factor. B) commodity money, because it is valued more highly, tends to drive out pap
Alex73 [517]

Answer:

The question is not complete.

Here is the complete question:

In explaining the evolution of money, the text claims that

A) government regulation is the most important factor.

B) commodity money, because it is valued more highly, tends to drive out paper money.

C) new forms of money evolve to lower transaction costs.

D) all of the above are true.

Here is the answer:

C.new forms of money evolve to lower transaction costs.

Explanation:

Before the advert of money, transactions between individuals were based on exchange goods for goods, a system called trade by barter. The system of trade by barter permits individual who has a particular good but desire another to exchange the goods he has with another person who has the goods he desires.

However, this system has a major flaw: transaction costs were higher.

The system of trade by barter only works if the two people involved has complimentary possession of goods that the other wants and be able to locate each other. With this high transaction costs, exchange of goods was difficult to carry out.

On this background, money evolve to lower this transaction costs and make exchange of goods possible without the need to have what another person wants and the trouble of finding where they are.

4 0
3 years ago
Read 2 more answers
Gelb Company currently manufactures 43,000 units per year of a key component for its manufacturing process. Variable costs are $
Mashutka [201]

Answer:

It is cheaper to buy the component. At this level of production by $40,750.

Explanation:

Giving the following information:

Production= 43,000 units

Variable costs are $2.95 per unit

Avoidable Fixed costs= $73,000 per year

Unavoidable fixed costs= $77,500 per year.

The company is considering buying this component from a supplier for $3.70 per unit.

We need to calculate the cost of producing and buying and choose the best option.

Production:

Total cost= 43,000*2.95 + 73,000= $199,850

Buy:

Total cost= 43,000*3.7= $159,100

It is cheaper to buy the component. At this level of production by $40,750.

8 0
3 years ago
What does the word Psychology means ?
nevsk [136]
Psychology is the study of behavior and the minds functions.
5 0
3 years ago
Read 2 more answers
Suppose that​ initially, the economy is in​ long-run macroeconomic equilibrium at point A. If there is increased pessimism about
attashe74 [19]

Answer:

a) In simple words, higher level of pessimism would result in lesser aggregate demand. Thus, AD will shift from point AD0 to the point AD1.  The fresh short time equilibrium is placed at point B (wherein AD1 is conneting to SRAS0).  Longer run accostoming will move SRAS curve from point SRAS0 to the pint SRAS1.  Hence, the New longer run equilibrium has been placed at point C.

3 0
3 years ago
Rappaport Corp.'s sales last year were $385,000, and its net income after taxes was $23,000. What was its profit margin on sales
Marianna [84]

Answer:

5.97%

Explanation:

Profit margin is an example of profitability ratio

profitability ratio  measures the ability of a firm to generate profit from its assets

Profit margin = net income / sales

= $23,000. / $385,000,

5 0
3 years ago
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