Answer:
Since the options were granted at an exercise price of $15 when the market value of the shares was $20, total compensation under the intrinsic method would be $5 per share on 1,000 shares or $5,000. Since the options are exercisable on 1/2/X2, the $5,000 in compensation would all be recognized n 20X1.
Explanation:
The correct option is C
<u>Explanation:</u>
The annual profit increase = $400,000
<u>The following formula is to be used in order to calculate the total profit enhancement in five years
</u>
The total profit increase in 5 years = 400000 multiply with 5 = $2,000,000 = $2 million
, As compared to cost of $1 million.
Thus, The correct option is answer (C) To take on the new salon because the expected marginal benefit ($2 million over 5-years) is greater than the estimated marginal cost ($1 million).
Answer:
the marginal cost curve is upward sloping.
Explanation:
Utility can be defined as any satisfaction or benefits a customer derives from the use of a product or service.
This ultimately implies that, any satisfaction or benefits a customer derives from the use of a product or service is generally referred to as a utility.
Basically, the marginal utility of goods and services is the additional satisfaction that a consumer derives from consuming or buying an additional unit of a good or service.
For example, buying a candy stick and eating it may satisfy your cravings but eating another one (an additional or extra unit) wouldn't give you as much satisfaction as the first due to diminishing marginal utility.
In Economics, the law of diminishing marginal utility states that as the unit of a good or service consumed by an individual increases, the additional satisfaction he or she derives from consuming additional units would start decreasing or diminishing as the units of good or service consumed increases.
Marginal cost can be defined as the additional or extra cost that is being incurred by a company as a result of the production of an additional unit of a product or service.
Generally, marginal cost can be calculated by dividing the change in production costs by the change in level of output or quantity. A marginal cost curve is upward sloping because of the law of diminishing returns.
Answer: Point B
If the demand increases suddenly because of a non-price determinant of demand, equilibrium point will shift to point B. At point B, the demand for mangoes increased from 4000 to 5000 pounds, and the price increased as well, from $5 to $6.
LLC i think that’s the answer
