The opportunity cost illustrates the relationship that exists between them because as the interest rate rises, the more attractive it is to leave money in the bank instead of spending on investments.
The investment line is downward sloping because of the relationship between real interest rates and investment spending.
Opportunity cost simply means what one foregoes in order to get something else. It should be noted that when there's an increase in the interest rate, this will lead, the cost of borrowing will be high. Therefore, there'll be a reduction in investment.
Therefore, there's a negative relationship between interest rate and investment spending. This then leads to a downward-sloping curve.
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Answer: suggests that the firm's previous choices were not the best ones.
Explanation: For a long-tenured top-level manager to make such proclamation, shows the inefficiencies of the firm which he is a part of. He obviously has been with the firm for a very long time and making that proclamation will also be a dent in his image as a manager.
Answer: Net Income
Explanation:
Net Income is the profit made by a company after it has finished paying off all expenses including taxes and interest payments on debt.
Calculating the net income is the main purpose of the Income statement which is where we will see the expenses that the business is incurring and how much sales they are making to get such profits. This net income is then transferred to the Retained Earnings in the balance sheet.
False, I thinkkkkk but I’m not sure
Answer:
B) yes no yes
Explanation:
Particulars Product X Product Y Product Z
Units Produced 2,000 2,500 3,500
Sales value at split-off $15 $19 $20
Add: Processing cost $5 $7 $7
Sales after processing $24 $24 $29
Profit after
processing further $24- $15 - $5 $24 - $19 - $7 $29 - $20 - $7
= $4 = - $2 = $2
Yes No Yes
Since revenue after split off is from Product X and product Z, Product Y is creating negative profit that is loss from further processing.
Correct option
B) yes no yes