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:
Someone with a high credit score may be required to make a lower down payment.
Explanation:
A high credit score is an indication of good borrowing and repayment culture by an individual. It shows the individual makes prompt repayments on their debts, and they hardly miss on installments. A borrower with a high credit score is labeled as creditworthy or a low-risk customer.
A low credit score arises when a customer has a bad history of debt repayment. They have either defaulted or tend to miss on installments. A borrower with low credit is considered high-risk and likely to default on payments.
A lender will demand a high deposit from a borrower with a low credit score to cover for the high-risk involved in the transaction. A borrower with a high credit score is a low-risk customer and does not need to offer a high deposit to access credit.
The interest earned compounded annually at $80.14
$1000 x (1.07)^2=1144.90 after 2 years
1144.90 x 0.07 = 80.14
A technique of calculating and adding interest to funding or mortgage as soon as a year, in preference to for any other period: if you borrow $100,000 at five% hobby compounded annually, after the first yr you'll owe $five,250 on a principal of $a hundred and five,000.
It's far to be mentioned that the above-given system is the general components while the major is compounded n quantity of instances in a yr. If the given most important is compounded annually, the quantity after the term at percentage fee of interest, r, is given as A = P(1 + r/a hundred)t, and C.I. could be P(1 + r/100)t - P.
That stated, annual hobby is commonly at a higher rate because of compounding. in place of paying out monthly, the sum invested has twelve months of increase. But if you are able to get the equal price of interest for month-to-month payments, as you can for annual bills, then take it.
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Answer:
NEUTRALITY, COMPLETENESS AND FREE FROM ERRORS.
Explanation: IASB( International accounting standards board) is board regulating the preparation of accounting Reports or statements. It released its first framework called CONCEPTUAL FRAMEWORK in the year 1989.
The qualities of a faithful conceptual framework by IASB is to guarantee NEUTRALITY, COMPLETENESS AND ENSURE THAT THE STATEMENT IS FREE FROM ERRORS.
This framework will help to prevent disputes and manage standards in preparation of account statements.
Answer:
Gain of $300
Explanation:
Based on the information given the investor have a debit spread and Since the investor paid a net premium of the amount of $600 which is calculated as : (7 − 1) in which the spread had widened to 9 which means the investor will have a profit or gain of the amount of $300 calculated as :(9 − 6) due to the spread .
Therefore the customer has a gain of the amount of $300 reason been that it is a Debit spreads and secondly Debit spread are often profitable.