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Anestetic [448]
3 years ago
15

John invested $12,000 in the stock of Hyper Cyber. Eight years later, Hyper Cyber's shares reached $125,000, but John held onto

the shares in the belief that their price would double in the next five years. Unfortunately, Hyper Cyber did not double. Rather the market value of John's shares today is $4,000. If the shares were sold today and the proceeds invested in another investment, they would likely earn 5% per annum. Which of the following terms and values is correct?
A. $125,000 is the opportunity cost of selling the shares todayB. $12,000 is a sunk costC. $250,000 is the opportunity costD. $2000 is the opportunity costE. None of the above
Business
2 answers:
Katen [24]3 years ago
7 0

Answer:

The answer is B

Explanation:

Nata [24]3 years ago
5 0

Answer:

B. $12,000 is a sunk cost

Explanation:

By considering the given information, the cost that is correct is a sunk cost for $12,000

The sunk cost is the cost already incurred and will not be retrieved in the future. Plus, it's also termed a past cost.  

It is a useless cost and it can be avoided also.  

It is that cost that is not considered at the time of decisions making.

So, option B is correct

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Households and firms with savings lend money to banks and other financial institutions. The credit supply curve shows the relati
Varvara68 [4.7K]

Answer:

B and C only.

Explanation:

The options of this question wasn't provided. Here are the options:

A.

higher real interest rate induces more investment.

B.

higher real interest rate discourages current consumption.

C.

higher real interest rate encourages more saving.

D.

all of the above.

E.

B and C only.

It is assumed that households either spend disposable income on consumption or savings. If interest rate is high, it would encourage households to save instead of spending on consumption. The same argument extends to firms.

This explains why the credit supply curve is upward sloping or positively sloped, the higher the interest rate, the higher the savings rate and the higher the credit supply. Conversely, the lower the interest rate, the lower the savings rate and the lower the credit supply.

I hope my answer helps you

8 0
4 years ago
Money demand is given by md/p = 1000 .2y - 1000i. given that p = 200, y = 2000, and i = .10, real money demand is equal to?
Marrrta [24]

The real money demand is equal to $2,60,000

Money demand/ P = 1000+0.2Y -1000i

Money demand/200= 1000+0.2(2000)-1000(0.1)= 1000+400-100

=1300

Money demand  /200 = 1300

Money demand  = $1300*200

= $2,60,000

Money demand is the demand for real cash balances as people hold onto money to purchase goods and services. The higher the price level, the more money you need to buy a certain amount of goods.

Learn more about Money demand here:brainly.com/question/24109874

#SPJ4

4 0
2 years ago
Factors of production are? scarce in every society. scarce only in advanced countries. scarce only in the poorest countries of t
Rashid [163]

Factors of production are scarce in every society.

<h3>What are the factors of production?</h3>

Factors of production are the resources that are used in the production of goods and services. Factors of production are scarce and this is why it is important to use them in the activities that would maximise their use.

There are four factors of production in economics. They include - land, labor, capital and entrepreneurship.

Land includes all the natural resources that are used to produce goods and services e.g. gold mine. Labor is the human effort that is exerted in  the production of goods and services. Capital includes machinery and man made resources used in production. An entrepreneur is a person who combines the other factors of production together

To learn more about factors of production, please check: brainly.com/question/12342608

#SPJ1

6 0
2 years ago
Which of the following are ways to motivate employees?
Fantom [35]

Answer:

The Answer is:

Set consequences for poor performance

Show appreciation

Set clear expectations

Be optimistic and positive

Set a vision and goals

Explanation:

I got it right trust

4 0
3 years ago
Which of the following activities is the least expensive?
kramer
Probably swimming unless for photography you use a cheap camera :p

It really just depends how you look at it 
3 0
4 years ago
Read 2 more answers
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