Answer:
(C) the fact that workers in a particular industry belong to a union.
Explanation:
All other options are considered as possible entry barriers because they may put hindrance for an entrepreneur to enter the field of producers . The fact that workers of a particular industry belong to a union because role of union comes only when industry starts functioning . It can not play any role at the start of an industry.
Answer:
Taste Freeze should Shut down production so that AVC will decrease.
Explanation:
Taste Freeze should Shut down and produce zero sandwiches because price is less than AVC.
Therefore, Taste Freeze should Shut down production so that AVC will decrease.
Answer:
Alvin should pay off the unpaid money.
Explanation:
The Alvin should pay off the balance of credit card with his extra money because the interest rate charged by the bank on the unpaid balance is very high (18 %) and the interest rate on saving is 1 % which is very low. If the unpaid balance will not be paid then Alvin’s extra money will go into the payment of interest rate. So, at first thing he should pay off the unpaid money.
Answer:
The payback period ignores the time value of money.
Explanation:
This could primarily be classified to be amongst the major disadvantages of the payback period that it ignores the time value of money which is a very important business concept. In the other hand, the payback period disregards the time value of money. It is determined by counting the number of years it takes to recover the funds invested. Some analysts favor the payback method for its simplicity. Others like to use it as an additional point of reference in a capital budgeting decision framework.
The payback period does not account for what happens after payback, ignoring the overall profitability of an investment.
