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3 years ago

The law of supply relates to opportunity cost because:__________

Business

2 answers:

uranmaximum [27]3 years ago

4 0

Answer:

both options are the same.

A) The opportunity cost to suppliers is the value of the next-best alternative they had when they supplied that good.

G) The opportunity cost to suppliers is the value of the next-best alternative they had when they supplied that good.

Explanation:

The law of supply states that the opportunity cost of a supplier not supplying the product will increase as the price of the product increases, therefore the supplier will be more likely to supply the product. As the price of the product decreases, the opportunity cost of not supplying the product also decreases, therefore, the supplier will be less likely to supply the product.

erastovalidia [21]3 years ago

4 0

Answer:C when a consumer chooses to purchase a product, then the consumer gives up opportunity cost

Explanation: opportunity cost ,is the cost of the alternative given up to purchase a particular good by a consumer while supply is the amount of good or services that a supplier is ready to sell at a particular price and time.

So the opportunity cost of an alternative or substitute determine the amount of goods that will be in demand ,i.e the higher the opportunity cost of an alternative,the more goods that will be required for purchase and the higher the the goods required to be sold by the supplier.

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A monopoly market is characterized by the inverse demand curve P = 1,200 – 40 Q and a constant marginal cost of $200. If the mar

Sergeeva-Olga [200]

Answer:

The profit maximizing output level declines by 2.5 units and the price rises by $100.

Explanation:

In a monopoly market the inverse demand curve is given as,

P = 1,200 - 40Q

The marginal cost of production of the last unit is $200.

The total revenue is

= $Price\times Quantity$

= $1,200Q - 40Q^{2}$

The marginal revenue of the last unit is

= $\frac{d}{dx} TR$

= 1,200 - 80Q

At equilibrium the marginal revenue is equal to marginal price,

MR = MC

1,200 - 80Q = 200

80Q = 1,000

Q = 12.5

Putting the value of Q in the inverse demand function,

P = $1,200 - 40\times 12.5$

P = $700

Now, if the marginal cost rises to $400,

At equilibrium the marginal revenue is equal to marginal price,

MR = MC

1,200 - 80Q = 400

80Q = 800

Q = 10

Putting the value of Q in the inverse demand function,

P = $1,200 - 40\times 10$

P = $800

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3 years ago

A firm has a tax burden of 0.9,a leverage ratio of 1.1, an interest burden of 0.6, and a return-on-sales ratio of 13%. The firm

Afina-wow [57]

Answer:

the firm's ROE is 20%

Explanation:

The tax burden is 0.9

The interest burden is 0.6

The return on sales margin is 13%

The turnover ratio is 2.62

The leverage ratio is 1.1

Calculate the ROE

ROE = 0.9 * 0.6 * 0.13 * 2.62 * 1.1

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3 years ago