Answer:
Not produce any additional roast beef sandwich
Explanation:
Allocative efficiency is reached when the marginal benefit or producing one more unit of output equals the marginal cost.
Allocative efficiency - Marginal Benefit (MB) = Marginal Cost (MC)
For this local deli, producing one more roast beef sandwich has a marginal benefit of $2, and a marginal cost of $3, we have:
MB = MC
$2 = $3
For the local deli, in this situation there is no allocative efficiency because the marginal cost is higher than the marginal benefit, therefore, the firm should not produce any additional roast beef sandwiches.
Answer:
the future value is $21,534.44
Explanation:
The computation of the future value is shown below:
As we know that
Future value = Present value × (1 + interest rate)^number of years
where,
Present value is $15,000
The Interest rate is 7.5%
And, the number of the year is 5 years
Now put these values to the above formula
So, the future value is
= $15,000 × (1 + 0.075)^5
= $21,534.44
Hence, the future value is $21,534.44
The correct answer is (2) A variable
An increase in the interest rate increases the opportunity cost of holding money and leads to a reduction in the quantity of money demanded
<h3>What is
opportunity cost ?</h3>
The opportunity cost of a particular activity option in microeconomic theory is the loss of value or benefit that would be incurred by engaging in that activity, as opposed to engaging in an alternative activity that offers a higher return in value or benefit.
The value of the next best alternative or option is referred to as the opportunity cost. This value may or may not be monetary. Value can also be measured using other criteria such as time or satisfaction. One formula for calculating opportunity costs could be the ratio of what you give up to what you gain.
To know more about opportunity cost follow the link:
brainly.com/question/1549591
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Answer:
C. Evaluate whether internal controls operated effectively.
Explanation:
Given that, a test of details of the transaction is an activity or process carried out by auditors, which can be done together with the test of control. The purpose of the test of control is, however, to determine the effectiveness of internal control.
Hence, in this situation, the correct answer is option C: Evaluate whether internal controls operated effectively.
