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3 years ago

Why does the law of increasing opportunity cost occur?

Business

1 answer:

Elena L [17]3 years ago

8 0

Answer:

The correct answer is A and B

Explanation:

Law of increasing the opportunity cost is the principle or the concept which is defined as the company continue to increase the production of one good, the opportunity cost of producing the next unit will increase.

It is as to reallocate the resources in order to produce that one good which was better or best suited to produce the original good.

The law of opportunity cost occur when some of the resources are best suited for some tasks or products instead of others and it will lead to increase in production with increase in the opportunity cost too.

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Jabiru Corporation purchased a 20% interest in Fish Company common stock on January 1, 2013 for $300,000. This investment was ac

Vesna [10]

Answer:

$280,950

Explanation:

As for the information given:

Closing balance of investment on 31 December 2015 = $440,000

Now the following adjustments need to be made to calculate the balance as on 1 August 2016

Add: Share of income from Jan to Jul 2016 = $4,000 $\times$ 7 months $\times$ 20% = $5,600

Less: Dividend Received = $20,000 $\times$ 20% = $4,000

Less: Amortization of patent = $6,000/12 $\times$ 7 = $3,500

= $440,000 - $1,900 = $438,100

Since Jabiru sold half of its investment, thus, value of its half of the investment shall be:

$438,100/2 = $219,050

Sale value = $500,000

Thus, gain amount = $500,000 - $219,050 = $280,950

5 0

3 years ago

A static budget is one that shows estimated revenues and costs at multiple activity levels. true or false

maxonik [38]

Answer:

A static budget is one that shows estimated revenues and costs at multiple activity levels.

True

Which of the following is not typically found in a decentralized organization?

Asset center

Explanation:

3 0

3 years ago

An investment banker agrees to a firm commitment offering of two million shares of Ace stock. The offer price is set at $55 and

balandron [24]

Answer:

loss of $ 1,400,000.00

Explanation:

Amount of share : two million:

offer price per share: $55

selling price per share: $53.80

Loss per share: $1.20

Total loss= $1.2X2,000,000= ($2,400.000.00)

Earning from spread: 0.5x2,000,000.00 =$1,000.000.00

Net earning: (2,400,000.00)+$1,000,000.00=($ 1,400,000.00)

loss of $ 1,400,000.00

8 0

3 years ago

abares Corporation had these transactions during 2020. Indicate whether each transaction is an operating activity, investing act

scZoUnD [109]

Answer:

(a) Issued $50,000 par value common stock for cash = Financing Activities

b) Purchased a machine for $30,000, giving a long-term note in exchange. Financing Activities = Non-cash Investing and Financing Activity

(c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000 = Non-cash Investing and Financing Activities

(d) Declared and paid a cash dividend of $18,000 = Financing Activities

(e) Sold a long-term investment with a cost of $15,000 for $15,000 cash = Investing Activities

(f) Collected $16,000 from sale of goods = Operating Activities

Explanation:

The Cash flows related to raising of capital is known as Cash flow from Financing Activities.

The Cash flows related to growing and selling of Assets of the business is known as Cash flow from Investing Activities.

The Cash flow related to trade in Ordinary course business of the Company is known as Cash flow from Operating Activities.

7 0

3 years ago

Assume that an investor purchased a put option on BP with an exercise price of $1.900 for $0.0215 per unit. There are 31,250 uni

vladimir1956 [14]

Answer:

a. $203.125

Explanation:

Calculation to determine the net profit/loss on this option to the investor

Net profit/loss=((1.900 - 1.885) - 0.0215)(31,250)

Net profit/loss=(0.015-0.0215)*31,250

Net profit/loss=0.0065*31,250

Net profit/loss=$203.125

Therefore the net profit/loss on this option to the investor will be $203.125

8 0

3 years ago