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3 years ago

The opportunity cost to a consumer who smokes cigarettes is the:

Business

1 answer:

andreyandreev [35.5K]3 years ago

6 0

Answer: d. Products the consumer could have bought instead of cigarettes.

Opportunity cost refers to the loss benefits from the choices a person would have made if he or she had not made a particular choice.

Opportunity cost is also known as alternate cost.

In this question, had the consumer would have spent on other products if he had not bought cigarettes. Hence these products represent the opportunity cost of cigarettes.

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A credit card company advertises an APR of 15.3%, compounded daily. What

Art [367]

Answer:

B. 16.53%

Explanation:

The effective interest rate is the real interest rate charged by a bank or any other type of lender on a loan.

the formula to calculate effective interest rate = r = (1 + i/n)ⁿ - 1

i =15.3%
n = 365 days

r = [1 + (15.3%/365)³⁶⁵] -1 = 1.00419178³⁶⁵ - 1 = 1.165287621 - 1 = 0.165287621 ≈ 16.53%

7 0

3 years ago

A year ago, Jasper Inc. sold 20-year bonds at par with a coupon rate of 4.5 percent and semiannual payments. The face value of e

scoray [572]

Answer:

= $877.32

Explanation:

The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).

Value of Bond = PV of interest + PV of RV

The value of bond for Jasper Inc can be worked out as follows:

Step 1

PV of interest payments

Semi annul interest payment

= 4.5% × 1000 × 1/2

= 22.5

Semi-annual yield = 5.6/2 = 2.8% per six months

Total period to maturity (in months)

= (2 × 19) = 38 periods (Note it was sold a year ago)

PV of interest =

22.5 × (1- (1+0.028)^(-38)/0.028)

= 22.5 ×23.20871226

= 522.196

Step 2

PV of Redemption Value

= 1,000 × (1.056)^(-19)

= 355.128

Price of bond

= 522.19 + 355.12

= $877.32

5 0

3 years ago

Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

yarga [219]

Answer:

$10,700

Explanation:

The unit product cost = $15 + $57 + $3 = $75

Sale revenue = $100 × 8,400 = $840,000

Less :Variable cost

Variable cost of goods sold = 8,400 × $75 = $630,000

Variable selling and administrative = 8,400 × $7 = $58,800

Contribution margin = $151,200

Fixed manufacturing overhead = $132,000

Fixed selling and administrative expenses = $8,500

Net operating income = $10,700

4 0

2 years ago

A project's duration can be reduced by: Shortening the duration of critical path tasks. Adding tasks to the critical path. Compl

lions [1.4K]

Answer:

Shortening the duration of critical path tasks.

Explanation:

The critical path method is relevant for achieving effective project management. By visualizing the project's activities, it is possible to analyze the time needed to complete the tasks and avoid possible delays. The possibility of calculating the duration of completion time, the longest or the shortest, for each activity, also helps in reducing uncertainties, as it helps in reducing the unexpected surprises that may occur in the project.

This method also guarantees the advantage of helping to reduce project time by the possibility of visualizing which tasks can be reduced, as the method generates a greater understanding of the project's deadline as a whole, allowing a clearer view on which tasks can be changed and which should remain unchanged.

8 0

2 years ago

A check for $5000 drawn on bank a by a depositor and been deposited in bank b. assume that required reserve ratio is 10%. Change

Alexeev081 [22]

Answer: -$500

Explanation:

The required return is the proportion of deposits that banks are supposed to keep with the central bank and in this case it is 10%.

The required reserves from the $5,000 is;

= 10% * 5,000

= $500

If the $5,000 is withdrawn from Bank A, the required reserves will decrease by $500.

7 0

2 years ago