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ANEK [815]
3 years ago
12

Sunk costs: a help to determine the optimal quantity of an activity. b have no impact on economic profit. c can dramatically inc

rease marginal costs. d are not considered in marginal analysis. e are the same as variable costs.
Business
1 answer:
riadik2000 [5.3K]3 years ago
7 0

Answer:

B

Explanation:

Sunk cost is the which incurred in the past and has nothing to do with the economic profit.  Because profit means in future what an owner gain and it does not have to deal with the past occurrence. The other options are not relevant and may be disregarded.

This has is of no consideration when decision is made about the future. It is just a lost money and cannot be recovered now.

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Laura is a gourmet chef who runs a small catering business in a competitive industry. Laura specializes in making wedding cakes.
mars1129 [50]

Answer:

The correct answer is the letter a. "Make more than 20 wedding cakes a month."

Explanation:

To maximize profit the marginal price of each cake must equal the marginal cost of each cake. The marginal cost is 300 and the marginal price is 5000/20 = 250. The marginal price of each cake (250) is less than the marginal cost of each cake (300), so Laura needs to make more than 20 cakes to increase her revenue and maximize her profit.

5 0
3 years ago
Consider a corporate bond with a $1000 face value, 8% coupon with semiannual coupon payments, 7 years until maturity, and a YTM
serious [3.7K]

Answer:

$961.42

Explanation:

firstly, we calculate the clean clean price below:

FV= 1,000

PMT= 40 (80 / 2)

I= 4.5 (9 / 2)

N= 14 (7 × 2)

Thus, PV= 948.89

Accrued Interest = coupon × (days since last payment/days in current coupon period)= 40 × (57 / 182) = 12.53

conclusively, dirty price = 948.89 + 12.53 = 961.42

3 0
4 years ago
In order to qualify for Long Term Care insurance, a person must be unable to perform how many of the basic activities of daily l
Marysya12 [62]
B ) at least 2 activities ~ apex
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4 years ago
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kolezko [41]
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B. Avoid gossip
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