Answer:
0.75 wheat
Explanation:
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
the opportunity cost of producing cars, is the quantity of wheat that would have to be forgone to produce one car
18 / 24 = 0.75 wheat
Kinked demand
I hope that helped
Answer:
b. All of the answers are correct.
Explanation:
Death Spiral is a situation when a company's goods or services produced are declining and fixed cost is same. The company will be exposed to a burden of fixed cost if its output is reduced.
In this question the various departments of a company are underutilized. The fixed price allocated to each department will be same hence creating a burden on a company's funds. Managers may decide to reduce the services they use to reduce the cost of their department. The internal pricing system will start recovering the sunk cost of company. Managers will also consider purchasing services internally or externally whichever is cost effective. All of the statements are correct there b is correct option.
Monthly Salary: $1200
Monthly food bills: $240
% of monthly salary spent on food is 20%.
If the world price increases relative to domestic prices, there will be fewer imports and increased exports of the given product because it would be cheaper to buy the domestic version and companies would make more selling the product on the international market.
