Answer:
d. $1,000
Explanation:
Implicit cost is the cost which has been incurred, and cannot be avoided. It is best described as an opportunity cost that has been foregone, here the funds have been borrowed specially for coffee shop. Interest expense of $8,000 is the cost for such borrowing, also the amount withdrawn from savings account have been used for coffee shop but the interest income foregone is the opportunity cost = $50,000.00
2% = $1,000 is implicit cost.
Therefore, correct option is d. $1,000
Answer:
The correct answer is option A.
Explanation:
Menu costs can be defined as the cost which is incurred by the firms because of changing prices. The size of the menu costs depends upon the type of firm.
There are some costs involved in printing menus, price lists, brochures, catalogs, and price tags, etc.
The concept of menu costs was given by Eytan Sheshinski and Yoram Weiss in 1977. It is used to explain price stickiness in a market.
In case the current price differs from the equilibrium price, the firms will change their price only if the additional revenue from a price change is able to cover menu costs incurred due to price change
Answer:
D. $21000
Explanation:
Calculation for the amount the firm should use as the initial cash flow attributable
Using this formula
Initial cash flow attributable to net working capital = Change in current assets - Change in current liabilities
Let plug in the formula
Initial cash flow attributable to net working capital=[(Increase in Account Receivable $19,000 + Decrease in inventory $2,000)] - ( Decrease accounts payable $4000)
Initial cash flow attributable to net working capital= (19,000 - 2,000) - [-4,000]
Initial cash flow attributable to net working capital=17,000 + 4000
Initial cash flow attributable to net working capital=$21,000
Therefore the amount the firm should use as the initial cash flow attributable to net working capital when it analyzes this project will be $21,000
I think that most of the people borrow money for large purchases instead of using a sinking fund because if you need money immediately borrowing money is a simple and easy thing, it takes less time whereas if you use sinking fund, it will take more time because for this you have to make plans earlier but it is a safe and protected method for clearing the debts.
Answer: I would have to guess option c the unemployment rate.
Explanation: