Answer:
The opportunity cost is the income earned from her balance on savings account at the interest rate of 3% per year that Reece would received if she had not opened her owned brewery business. This opportunity cost is $600 per year.
Explanation:
Please find the below for further explanation and calculations:
The opportunity cost per one year = Income earned on saving account per one year = 20,000 x 3% = $600;
The reason why it is an opportunity cost is because as a result of opening brewery business, Reece sacrifices the income earned on this saving, instead, she contributes the saving fund to her brewery business.
Answer:
C. It is done to postpone taxes to a future date
Explanation:
Selling short against the box can no longer be done to defer tax to the next tax period
Answer:
Potential total surplus to increase.
Explanation:
As we know that:
Producer Surplus = Market value - Minimum price to sell
This means that for Juan:
Market value at which he can sell the ticket to Mara was $200 and the minimum price that he will accept will be $120
By putting values, we have:
Liam's surplus = $200 - $120 = $70
Now
Consumer Surplus = Consumer willing to Pay - Consumer Paid
For Alexander, the amount he was willing to pay was $250 and what he actually paid was $200 if the regulation hasn't intervened.
Alexander's surplus = $250 - $200 = $50
This means that the regulation prevents the increase in the potential total surplus and this has increased the dead weight loss of $120 ($70 + $50).
Answer:
a) €152081.6128
b) €125000
Explanation:
a) The cost of dampners in terms of then-current euros :
current cost x(1 + inflation rate)ⁿ where n is the number of years.
Since the price of dampners is expected to increase only by 4% per year from the current price of €125,000 in 5 years:
We calculate : 125000 (1+0.04)⁵ = €152081.6128
The cost of dampeners in terms of then-current euros is €152081.6128
b) The cost of dampners in terms of constant value will remain as at today's current price if the value of Euros remains constant . Therefore, The cost of dampeners in terms of constant-value euros is €125,000.
Answer:
C. a derived demand.
Explanation:
Derived demand is a rise in the demand of a product due to the increase in demand for related or intermediate goods. If two distinct goods or services are used together, a rise in the demand of one will cause the demand for the other to rise. Products or services used together are called complementary goods.
Derived demand is primarily as a result of the usage of a product in the production or consumption of other goods or services. In this case, the demand for workers is solely due to a rise in the demand for cars. Should the demand for vehicles decrease, then the demand for workers will fall.
