Answer:
External cost
Explanation:
External cost is a cost that is gotten from any economic transaction, in which the person or entity bearing the cost is not directly involved in. They are also known as spill over costs. The offensive odor in the question has generated an external cost at different locations from the site, the cost of rent differs. External costs usually have negative effects, from our question we can see that the odor from the landfill site must be intolerable for people residing in the area.
Answer:
The correct answer is option d.
Explanation:
If a demand curve is linear and downward sloping, different points on the line can show different values of slope. The value of slope will be equal to the ratio of change in price to change in quantity demanded. The value of slope will be the same throughout the line.
The price elasticity is the ratio of change in quantity to change in price. The price elasticity can be different for different points on the demand curve.
The points on the lower parts are more inelastic while the points on the upper portion are more elastic. The midpoint represents unit price elasticity.
Since the upper portion is more price elastic, an increase in price will cause a more than proportionate decrease in the quantity demanded. This will cause the total revenue to decrease.
Available Options Are:
a. Cost of Goods Sold
b. Net Profit Margin
c. None of these
d. Asset Turnover
Answer:
Option B. Net Profit Margin
Explanation:
The increase or decrease in cost of Goods sold can not tell whether the return on assets has increased or decreased becuase it would only tell that the expense are decreased or increased not the profit. Which means it only tells one side of the story hence Option A is incorrect.
Option B is correct because it talks about the profit. If the manufacturing cost has been decreased then the it must increase the profit. Because if the profits has increased then the return on asset will increase. Hence the Option B is correct here.
Option D is incorrect because asset turnover formula is:
Asset Turnover = Sales / Total Assets
The decrease in manufacturing cost will not increase the sales because sales and total assets are independent of manufacturing expenses hence the Option D is incorrect.
Answer:
Project Size IRR
A $650,000 14.0%
B 1,050,000 13.5
C 1,000,000 11.2
D 1,200,000 11.0
Explanation:
Based on the information given the set of projects that should be accepted should be the project that has higher Internal rate of return (IRR) than the Weighted average cost of capital (WACC) percentage of 10.8% . Hence, the set of projects that should be accepted are: Project A,B,C,D
Project Size IRR
A $650,000 14.0%
B 1,050,000 13.5
C 1,000,000 11.2
D 1,200,000 11.0
Total $3,900,000
Based on the above we can see that Project A,B,C,D has a total of $3,900,000 which is higher than the retained earnings amount of $2,500,000.
Therefore the set of projects that should be accepted should be Project A,B,C,D
B.
adding up the incomes received by all the resources that contributed to production.
Or
D.
all of the above.
