Explanation:
The opportunity cost does not change because before Alphonso had to sacrifice 4 bus tickets when he ate a burger, because with the $2 that he spent, he could buy 4 tickets. And he had to sacrifice 1/4of a burger when he decided to purchase a bus ticket. Now he needs to sacrifice the same: if he decides to buy a bus ticket ($1) he sacrifices 1/4 burger and when he decides to buy a burger ($4), he sacrifices 4 bus tickets. His budget constraint is negatively affected because the price of both goods increased. If this income does not change, now he can consume less burgers and less bus tickets.
For example: Alphonson´s income was $8. Before, if he used all his income in burgers, he could purchase 4 units. And if he used all his income in bus tickets, he could purchase 16 units. Now (if his income remains the same), if he uses all his income in burgers, he can purchase 2 units. And if he uses all his income in bus tickets, he can purchase 8 units. The figure attached is the consumption possibilities frontier, which represents Alphonso´s consumption decisions. The slope represents the opportunity cost between burgers and bus tickets. Notice that the curve shifted to the left because now he can purchase less burgers and less bus tickets.
Answer:
The correct answer is $10,125 and increase in wealth.
Explanation:
According to the scenario, the given data are as follows:
Total shares bought = 225 shares
Current stock price = $45
So, we can calculate Wilson's total wealth in Krit Corp. by using following method:
Total wealth = Total shares bought × Current stock price
= 225 × $45
= $10,125
Hence, the total wealth of Wilson is $10,125.
Wilson wealth will increase because if the company stock price increase Wilson's stock price also increase, which results in increase of wealth.
Hey Friend
Monopolistic competition are markets with many buyers and sellers, easy to enter and leave, but with differentiated products. Therefore, the answer is (C).
Answer:
total product costs = $101750
Explanation:
given data
overhead costs = $ 100
Direct materials of $41,000
direct manufacturing labor = 450
per hour = $35
markup rate = 30 %
solution
we get here total product costs that is express as
total product costs = Direct materials + DML + MOH ..........1
total product costs = $41,000 + ( 450 × $35 ) + ( 450 × $100 )
total product costs = $41,000 + $15750 + $45000
total product costs = $101750
Answer:b. net income is overstated
Explanation:
The cost of inventory which is a constituent of cost of goods sold will have an impact on the income, an higher cost of inventory means low net income and lower cost of inventory means an higher net income. Therefore if the inventory is understated it leads to profit overstatement.
Net income will not be understated because a cost item has been understated but it will only be overstated, cost of merchandise sold is understated but this is the action and not the effect, merchandise on the balance sheet will be understated and not overstated.
