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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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Create a cash flow statement for your own finances. Why are cash flow statements useful in managing money?
trapecia [35]
Answer:

Cash flows tell us about the company’s actual outflows and inflows of cash in particular period such as quarter or year or others. This very important for business as cash flow from main operations helps the company to see whether they are generating enough to invest in growth projects or not.
7 0
2 years ago
What is - x when x=12
maksim [4K]
If x is 12 the answer is -12
6 0
3 years ago
Suppose that the demand elasticity for cigarettes is equal to 2.0. If the demand elasticity for Camel cigarettes is equal to 6.0
Lostsunrise [7]

Answer:

Let understand what elastic and inelastic demand is:

- If the small change in price causes heavy change in the quantity demanded then the demand is said to be elastic.

- Opposite to it is inelastic where even there is a very high change in the price but there is not so much effect on the quantity demanded.

Here, Camel cigarettes has a price elasticity of demand which is equal to 6 which means if the price suddenly increased, the quantity demanded will decrease. If any cigarette is having price elasticity of demand less than 2, it means it has less elasticity or if price increases very much then quantity demanded will not be affected so much.

8 0
3 years ago
If the price of jelly goes up by 10 percent, we observe a decrease in the quantity demanded of peanut butter of 20 percent. the
Sedaia [141]
Cross price elasticity refers to the measure of responsiveness of the quantity demanded of a product to a change in price of another good. 
From the question given above, 
cross price elasticity = -20% / 10% = -2.
The cross price elasticity for the goods above is - 2. Which means that the goods are not substitutes. 
A positive cross price elasticity which is greater than zero means that the goods are substitutes.
6 0
3 years ago
12-3. (Break-even point and selling price) Simple Metal Works, Inc. will manufacture and sell 300,000 units next year. Fixed cos
aev [14]

Answer:

Selling price= $5.08

Explanation:

Giving the following information:

Number of units= 300,000

Fixed costs= $350,000

Desired profit= $250,000

Variable cost rate= 0.65

<u>First, we need to calculate the unitary contribution margin using the break-even point formula:</u>

Break-even point in units= (fixed costs + desired profit)/ contribution margin per unit

300,000 = (350,000 + 250,000) /  contribution margin per unit

300,000 contribution margin per unit = 600,000

contribution margin per unit= 600,000/300,000

contribution margin per unit= $2

<u>If the variable cost rate is 0.65, then:</u>

Unitary varaible cost= 2/0.65= $3.08

Selling price= contribution margin per unit - unitary varaible cost

Selling price= 2 - (-3.08)

Selling price= $5.08

5 0
2 years ago
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