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telo118 [61]
3 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]3 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.

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Shore Company reports the following information regarding its production cost. Units produced 36,000 units Direct labor $ 31 per
Sedaia [141]

Answer:

$73.86 per unit

Explanation:

The computation of the cost per unit under the absorption costing is as follows

= Direct material per unit + Direct labor per unit + variable overhead per unit + fixed overhead per unit

where,

Variable overhead cost per unit

= $288,000 ÷ 36,000 units

= $8 per unit

And, the fixed overhead cost per unit is

= $102,920 ÷ 36,000 units

= $2.86 per unit

So the cost per unit is

= $32 + $31 + $8 + $2.86

= $73.86 per unit

3 0
3 years ago
The purpose of a good web page design is to make it_and_ .
Cloud [144]
The purpose of a good web page design is to make it successful and admirable
8 0
3 years ago
In 2008, Zimbabwe ran out of locally produced Coca Cola and local Coke bottlers were not able to import the concentrated syrup n
almond37 [142]

Answer:

4) Hyperinflation

Explanation:

Hyperinflation is when the prices of goods and services rise more than 50 percent a month. At that rate, a loaf of bread could cost one amount in the morning and a higher one in the afternoon. The severity of cost increases distinguishes it from the other types of inflation.

3 0
3 years ago
Under the liability provisions of section 11 of the Securities Act of 1933, auditors may be liable to any purchaser of a securit
qaws [65]

Answer:

b) If auditors can demonstrate due diligence.

Explanation:

Under the liability provisions of section 11 of the Securities Act of 1933, auditors may be liable to any purchaser of a security for certifying materially misstated financial statements that are included in the registration statement. Under section 11, auditors usually will not be liable to the purchaser if auditors can demonstrate due diligence.

Section 11 of the Securities Act of 1933, 15 U.S.C. § 77k (1988), provides investors with the ability to hold issuers and others liable for any damage incurred and caused by false statements of fact or even material omissions of fact within registration statements as at when effective.

The Securities Act of 1933 was used to regulate the stock market as the first federal legislation. With this act, power was given to the federal government and taken away from the state governments.

Hence, the Securities Act of 1933 is used to protect investors from frauds by creating a set of standard rules.

In conclusion, auditors usually will not be liable to the purchaser if auditors can demonstrate due diligence in their services and responsibilities.

5 0
4 years ago
At Park Incorporated, employees are allowed one-hour lunches, but it has become common that most stroll back fifteen minutes lat
Rudik [331]

Answer:

Social Factor - Cultural Norm

Explanation:

The behavior is common in all Park's employees so there isn't any individual factor which is affecting their behavior. Further, Social Factor (Cultural Norms) can be accounted for this impact.

  • Cultural norm: This habit has been developed as the cultural norm (particular behaviors which are accepted in society). Everyone is following it continuously and without guilt or intention of not repeating it.
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