The given statement is true that it is better for businesses to have a 'lower' opportunity cost since it often provides them a with a comparative advantage.
Opportunity costs refer to a relative measure of missing potential benefits from unavailed production opportunities. Whereas the concept of comparative advantage refers to the ability of an economy to produce a specific service or product in a more economically competitive and efficient manner than its trading peers.
Since comparative advantage increases profitability and 'lowers' opportunity costs, the comparative advantage theory suggests that opportunity cost is a factor for analysis in selecting between different options for production. That is the point where comparative advantage is seen from the perspective of opportunity costs as it allows companies to focus on resources, labor, and capital required for production with lower opportunity costs and higher profit margins.
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Answer:
From the information given in the question, producer A will be only producer that can produced the oil if oil market price is $9/barrel as producer B and C will not cover the extraction cost at this price. Hence, only 100 barrel oil is produced
Explanation:
Given data:
Extraction cost of oil producer A = $8
Extraction cost of oil producer B = $10
Extraction cost of oil producer C = $12
Total production of oil per day = 100
From the information given in the question, producer A will be only producer that can produced the oil if oil market price is $9/barrel as producer B and C will not cover the extraction cost at this price. Hence, only 100 barrel oil is produced
Answer:
The managers need to understand the importance of data due to the fact that this one affects to the decision making process.
Explanation:
On one hand, the data is the source of the information itself, the data could be good or bad depending on the type of information that a person is trying to get, therefore that a good compilation of data will impact in realiable information. Furthermore, trustfull information means that the decision that needs to be taken will be mostly good because the information is complete and trustfull and therefore the uncertainty will decrease.
On the other hand, the information is the principle and most important resource of a manager due to the fact that decisions are made in a context where the person has o has not enough information to a make a good call. Therefore that leaders need to understand how the data works and how this affect the decision making process.
Answer:
$13,500
Explanation:
The computation of the ending balance in the allowance for doubtful accounts is shown below:
= Unadjusted credit balance of allowance for doubtful accounts + net credit sales × estimated bad debts losses percentage
= $3,300 + $170,000 × 6%
= $3,300 + $10,200
= $13,500
Basically we applied the above formula to find out the ending balance in the allowance for doubtful accounts