Answer:
A
Explanation:
Sunk cost is cost that has already been incurred and cannot be recovered. It should not be considered in making future decisions.
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives. Opportunity costs are costs associated with "the road not taken".
An example of opportunity cost : you quit your job where you ern $50,000 to start your business. the opportunity cost of starting your business is $50,000 - your salary that you would be forgoing to start your business
The answer & explanation for this question is given in the attachment below.
Answer:
The average consumption is higher in University A. than in University B
Explanation:
Marginal cost is known as the cost borne when an extra unit of output is being produced. Sunk cost is the cost once incurred cannot be recovered
The marginal cost at university A is $0 because they dont have to pay anything over and above $500. This $500 is the sunk cost for students at university A. The marginal cost at university B is $2 because they can consume only 250 pounds of food making them careful about the quantity of food they eat.
Sunk cost is not considered while making a decision, so the marginal cost of University A is $0 and that in University B is $2.
Therefore, we are concluding that the average consumption is higher in University A.
Answer: A stock split will not have any effect on the total common stockholders' equity of $1,200,000.
Explanation:
A stock split is the issue of shares to the stockholders of a company. In this case, a stockholder will have 2 shares for a 1 share held earlier. Because the total equity does not change, the value of each share falls, reducing the market price. The total number of common stock however will increase.
The calculation is done in the following way.
Candela has common stock outstanding of 200,000
2x : 1 ( 2 x 200,000: 200,000)
=400,000 common stock
