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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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Explanation:

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Consider these long-term investment data: • The price of a 10-year $100 par zero-coupon inflation-indexed bond is $84.49. • A re
AleksAgata [21]

Answer:

Annual rate 0.017

Explanation:

Computation of the annual rate on the real bond.

Using this formula

Annual rate = Par Zero coupon inflation index/(1+r) ^Numbers of years =Inflation-indexed bond

Let plug in the formula

Annual rate=100 / (1 + r) ^10 = 84.49

Annual rate= (100 / 84.49)^1 /10 − 1

Annual rate=(1.18357)^0.1-1

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Annual rate=0.017

Therefore the annual rate of return will be 0.017

3 0
3 years ago
Read 2 more answers
Evaluating your payoffs as gains or losses relative to an arbitrary baseline distorts your decisions and is a problem associated
7nadin3 [17]

The study of an agent's or individual's decisions is known as decision theory. The official decision-making process concludes with evaluation. Evaluating the consequences may assist the decision-maker in learning lessons that will help her make better decisions in the future.

  • Loss aversion is the correct answer because the general notion of the "loss-aversion" theory is that if an individual is provided with two equal alternatives, one of which is presented in terms of prospective profits and the other in terms of potential losses, the former option will be chosen.

  • Loss aversion is a cognitive bias or psychological phenomenon that explains why the agony of losing is twice as powerful psychologically as the pleasure of winning.

Therefore, representativeness, cognitive bias, and overconfidence are not factors relative to an arbitrary decision distortion. So, Loss aversion is the correct response to the question.

For more information regarding arbitrary baseline, refer to the link:

brainly.com/question/11224360

5 0
2 years ago
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After graduating with a degree in business from eastern university in campus town, usa, michael woods realized that he wanted to
777dan777 [17]
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second, he wanted a business that would give back tot he community.

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fourth, realizing that he was going to have to work very hard, Micheal wanted a business that would generate a minimum income of 25,000 annually.
6 0
3 years ago
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Oksanka [162]

Answer:

The target stock price in year 1 is $51.12

Explanation:

Given SE = $6 MIL, NI= $906 000, Div= $408180, Shares= 200000, PE ratio= 24 , SP =?

W e will use the price earning ratio as we are are given the benchmark PE ratio and this ratio measures the stock price relative to it profits

PE = Stock price / Earnings per share

Need to calculate Earnings per share

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Sustitute in the formula for PE ratio

24 = Stock Price/2.13

Stock Price = $51.12

Therefore the target stock price in year 1 is $51.12

5 0
3 years ago
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