1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
telo118 [61]
2 years ago
15

Manuel has plans to go to a movie and already has a $10 nonrefundable, nonexchangeable, and nontransferable ticket. Now Poornima

, whom Manuel has wanted to date for a long time, asks him to a concert. Manuel would prefer to go to the concert with Poornima and forgo the movie, but he doesn't want to waste the $10 he spent on the movie ticket.
From the perspective of an economist, if Manuel decides to go to the movie, what has he just done?

1. Incorrectly allowed a sunk cost to influence his decision
2. Made an optimal choice
3. Correctly ignored a sunk cost
Business
1 answer:
Verdich [7]2 years ago
8 0

Answer:

3. Correctly ignored a sunk cost

Explanation:

Sunk costs refer to those costs which have been incurred in the past and which can no longer be recovered. For example, past expenditure on research and development with no current or future benefits represent sunk costs which can no longer be recovered.

Sunk costs are irrelevant for decision making process as they do not relate to current projects and yield no economic benefit.

In the given case, Manuel had already purchased a $10 movie ticket, which can neither be transferred nor eligible for a refund.  Later when he does not exercise the option of going for the movie and opts for a concert instead, the amount of 10$ spent on the movie represents a sunk cost which is non recoverable.

You might be interested in
When Nina tells her manager that she doesn't feel she needs to attend various training sessions at company expense or utilize su
Virty [35]

Answer:

The right answer is, False.

Explanation:

Nowadays companies seek to improve the attitudes, knowledge and skills of their employees, through training activities so that everyone works synergistically in achieving the objectives of organizations.

3 0
2 years ago
Is it possible for a country with a regressive tax system to have a tax-spending system that transfers resources from the rich t
lara31 [8.8K]

Answer:A

Explanation:

A regressive tax is a tax impose in such a manner that the tax rate decreases as the amount subject to taxation increases.

5 0
3 years ago
Suppose a self-regulating economy is in a recessionary gap at the time the Fed enacts expansionary monetary policy. Furthermore,
anzhelika [568]

The combination of expansionary monetary policy and a self-regulating economy will cause real GDP will rise to the level above natural real GDP and the recessionary gap would hence turn into an inflationary gap situation.

<h3>What do you mean by monetary policy?</h3>

Monetary Policy refers to the control of the quantity of money available in an economy through which new money is supplied.

The self-regulating economy experiences a recessionary gap. The real GDP is less than the level of natural real GDP. The gap is been corrected by the rightward shift in the short-run aggregate supply curve.

Due to interplay, real GDP will rise to the level above natural real GDP and the recessionary gap turn into an inflationary gap.

Learn more about Monetary policy here:

brainly.com/question/3817564

#SPJ1

8 0
2 years ago
The U.S. work week has declined from 60 hours in 1890 to 40 hours today. The impact of the decline in working hours:________
Len [333]

Answer:

It will Decreases U.S. real GDP and on the other way round it will increases the well-being of a typical working person in the U.S.

Explanation:

The impact of the decline in working hours is that it will Decreases U.S. real GDP and on the other way round it will definitely lead to increase in the well-being of a typical working person in the U.S. because of the decline in the U.S work week which was formally 60 hours in the 1980 but now 40 hours today because a typical working person will have more time for him/her and the stress involved in working for 60 hours per week will reduce when compared with working for 40 hours per week because a typical working person in the U.S will preferred to work for 40 hours per week than 60hours per week for the betterment of their well being.

4 0
3 years ago
Riverbed Corp has 8,400 shares of common stock outstanding. It declares a $5 per share cash dividend on November 1 to stockholde
Paha777 [63]

Answer:

Date       Account Titles and Explanation        Debit           Credit

1-Nov     Cash Dividends                             $42,000

              (8,400 shares x $5)

             Dividends Payable                                                   $42,000

             (To record dividends payable)  

1-Dec      No entry on this date

31-Dec     Dividends Payable                     $42,000  

                Cash                                                                        $42,000

            (To record payment of cash dividend)  

4 0
2 years ago
Other questions:
  • Mike is considering investing $18,500 in an investment that will have a maturity value of $32,500 in 8 years. if the interest is
    8·1 answer
  • Baldwin's turnover rate for this year is 6.27%. This rate is projected to remain the same next year and no further downsizing wi
    7·1 answer
  • When preparing the statement of cash flows by the indirect method, if current liabilities increase the difference is
    14·2 answers
  • A lessor is a party who acquires a right to the possession and use of goods under a lease.a) trueb) false
    12·1 answer
  • Consumer protection laws might result in:
    14·2 answers
  • Charlie and Sally are contending parties to a lawsuit involving the division of their inheritance from their grandmother. They w
    14·1 answer
  • Capitalizing costs that should be expensed: a. is a practice mostly found in large, well-established companies. b. is a healthy
    5·1 answer
  • Dylan made a presentation on the organization of the federal government of the United States. What indicates that Dylan's presen
    12·1 answer
  • What are the principles of Csr
    11·1 answer
  • OFFERING 20 POINTS Whitney's proposal to build 10,000 guns relied on what two important elements found in the modern manufacturi
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!