Answer:
A. becomes positive once the value of the next best use of resources used in production is included
Explanation:
Economic profit is accounting profit less implicit cost or opportunity cost.
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
Accounting profit is total revenue less total cost.
If in the short run firms are earning economic profit, in the long run firms would enter into the industry and this would drive economic profit to zero. While economic profit is zero, accounting profit would be postive. So the firm would still be earning accounting profit.
I hope my answer helps you
Answer: Only Material costs are relevant
Explanation:
The material cost under alternative X is given as $41000 while under alternative Y is given as $59000.
The processing cost under alternative X is given as $45000 while under alternative Y, the processing cost is given as $45000 as well.
Then, we can deduce that only the materials costs are relevant since the processing costs are thesame.
Answer:
The question is calculating the depreciation expense using straight-line method for 2018 and 2019?
Depreciation expenses for 2018: $725;
Depreciation expenses for 2019: $2,900.
Explanation:
We have yearly depreciation expenses is calculated as:
Yearly Depreciation expense = (Original cost - Salvage value) / Useful life = (19,500 - 2,100) /6 = $2,900.
For 2019, depreciation expense is recorded for the full-year at $2,900.
For 2018, depreciation expense is recorded for only three months ( as delivery truck was bought on Oct 1st 2018), which is calculated as: Yearly Depreciation expense / 12 * 3 = $725.
So, the answer is:
Depreciation expenses for 2018: $725;
Depreciation expenses for 2019: $2,900.
Answer:
When you transition, a brief recap of the information that has just been heard is known as an internal review.
Explanation:
Internal review is the recap of information that has just been heard in transition.
Answer:
(A) Successive price changes are independent of each other
Explanation:
Random walk theory claims that past information and trends cannot be used to predict future price movement of the stocks since as per the theory, stock price movements are unpredictable and walk(move) randomly.
The theory further suggests that stock prices have same distribution and are independent of one another. It means there is no correlation between price movements of two different stocks.
Thus, Stock prices follow a random walk implies that successive price changes are independent of each other.
