Opportunity cost - The next-best thing that must be foregone in order to product one more unit of a given product.
Utility - The pleasure, happiness, or satisfaction obtained from consuming a good or service.
Economics - The social science concerned with how individuals, institutions, and society make optimal(best) choices under conditions of scarcity.
Marginal Analysis - Making choices based on comparing marginal benefits with marginal costs.
Answer:
b.$20,000 ordinary income and $4,000 net long-term capital gain
.
Explanation:
For 2018, each shareholder should report:
180,000/9 = 20,000
36,000/9 = 4,000
b.$20,000 ordinary income and $4,000 net long-term capital gain
The two types of shopping products are homogenous and heterogenous products. Hence the correct answer choice is option (d).
<h3>Enlist the features of a homogenous product.</h3>
Following are the features of a homogenous product :
- Market Structure: A crucial characteristic of a perfectly competitive market is homogeneous products. A market structure known as perfect competition is one that has numerous customers and sellers, homogeneous products, and no entry obstacles. Theoretically, homogeneous commodities cannot be distinguished from one another in a market with perfect competition.
- Price Determination -A homogenous product's pricing is the deciding factor in which one product should be chosen over another. When a customer is in front of a shelf filled with similar goods, they are searching for the one with the best deal.
- Consumer Loyalty: Referring to customers that favour a product brand, marketing strategy, or the company's ideals, consumer loyalty is important for products that are not uniform in nature. When a product, like laundry detergent or dish soap, is a recurring necessity, consumer loyalty may apply to homogeneous commodities. A consumer will frequently remain loyal to a homogeneous product in the future if they originally buy it based solely on pricing and are happy with it.
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The complete question is mentioned below :
The two types of shopping products are:
a. unsought and convenience.
b. generic and family.
c. exclusive and intensive.
d. heterogeneous and homogeneous.
e. consumer and business.
Answer: A. cause incremental cash flows to increase
Explanation:
Incremental Cashflow (ICF) is the added cash that a company gets from embarking on a project which means that this Cashflow must be independent of expenses. If ICF is positive then the company will see it's Cashflow increase if they accept the project because it will contribute to their cash flow.
ICF is calculated from the Net Income of the project but seeing as Depreciation is a non-cash expense that is removed from the Income Statement. In calculating ICF it is added back as ICF deals with actual cash and Depreciation did not cost any actual cash.
More Depreciation therefore means an increase in Incremental Cash flow when it is being calculated from Net Income.
The natural borrowing limit is a restiction