Cost and benefit in economic example

1 answer:

3 0

Cost and benefit analysis is an attempt to estimate all expenses involved and possible profits to be derived from a business opportunity or proposal.

It takes into account both quantitative and qualitative factors. Benefits to costs ratio and other indicators are used to do the assessment and the objective is to ascertain the soundness of investment opportunities. Example: An entrepreneur is thinking about opening a coffee shop where lots of office workers pass by. The rent (cost) is $500.000 a month and the estimated income (benefit) is $3.000.000 a month. The location is very far from his home (cost) but he has developed good skills at customer service so it would be relaxing to provide office workers with some free enjoyable time drinking coffee (benefit). Benefits are much higher than costs so the project is cost/benefit effective.

You might be interested in

Because of the Roosevelt-Taft feud, Theodore Roosevelt decided to

My name is Ann [436]

Answer:

The correct answer is c) break a pledge he had made not to seek another term in office.

Explanation:

Roosevelt, after finishing his second term as the president, made the decision not to appear again for the presidency and decided to go on an expedition to Africa.

After returning from Africa, he finds William Howard Taft as president. He is not satisfied with the policies that William Taft develops, so Roosevelt decides to break his promise not to return to the presidency.

Roosevelt tries to return to the mandate, but it is not easy, he joins the progressive party, and although he did better than Taft, the candidate Woodrow Wilson wins the elections.

I hope this information can help you.

6 0

3 years ago

Identify how protecting sovereign boundaries in regards to intellectual property has a positive effect on the gdp

slava [35]

By protecting intellectual property, we made a specific invention could only be produced by the inventors alone.

Which means that the companies in other countries do not possess the right to produce it. This will increase the GDP of the country where the inventors came from

hope this helps

3 0

3 years ago

What was one important factor that contributed to the American victory at yorktown

aleksandr82 [10.1K]

One major factor was when the French finally decided to help the colonists. They sent a army on land and their navy at sea. So while both the colonist (Americans) and French blocked the British on land, the French navy ultimately prevented the British from using their sea escape route. With no strategic options left, General Cornwallis, the British general of the Battalion surrendered. This victory wasn't just a battle victory for the colonist, it was what allowed them to win the war.

6 0

3 years ago

List three things through which Solomon sought happiness. What can Christians learn from the example of Solomon's search for hap

klio [65]

Answer:

<h3>Knowledge, wealth and reputation.</h3>

Explanation:

Three things through which Solomon sought happiness were knowledge, wealth and reputation.

King Solomon in an attempt to find happiness on this earth tried many experiences. However, all of them proved to be futile and adequate as compared to God's love and blessings.

Christians can learn from king Solomon's experiences that even the most powerful and richest man on earth failed to find happiness under the sun/on this earth. It is only through God's presence and love that one can achieve truest happiness.

5 0

2 years ago

describe one important way in which the flow of energy through ecosystems is different from the cycling of matter

notka56 [123]

Carbon and nitrogen are examples of nutrients. Unlikeenergy, matter is recycled in ecosystems. In the figure below, you can see how (Figure below). Decomposers release nutrients when they break down dead organisms.

7 0

3 years ago