Answer:
the value of the goods that were given up to produce the bicycle.
Explanation:
Opportunity cost is the cost of the next best option forgone when one option is chosen over other alternatives.
the opportunity cost of purchasing the bicycle is the value of other things that could have been bought instead of the bicycle
Answer:
<em>d. regressive tax.</em>
Explanation:
Because as we can see on the given statements that lower income people come to buy grocery than the higher income people, so the 10-cent fee for disposable bags will come under regressive tax, as we know that regressive tax is a tax in which is taken or collected largely from the lower income people than the higher income people.
<em>So, the correct option will be OPTION (d).</em>
Answer:
I. If labor and capital are perfect substitutes in production, the isoquant is a straight, downward-sloping line.
II. If a company needs to use inputs in fixed proportion such that the capital to labor ratio is always 2, the firm's isoquants are L-shaped.
Explanation:
Perfectly substittuable goods have straight downward sloping ICs, and have corner solutions
.
Complementary goods (used in fixed proportions) are L shaped always
, In case of min(x,y) function, the answer is the value of x or y which ever is minimum and not their sum.
Therefore, Only statements I and II are true.
Answer:
Explanation:
Total cost per unit <u><em>(Which is calculated by adding up the fixed costs and variable costs and dividing by the overall quantity of units produced.)</em></u> is calculated below:
(20 + 30 + 8 + 13 + 12 + 7)
90
Desired return
20% on 1440000
288000
Per unit 288000/10000.
28.8
Markup on cost
Desired return per unit
28.8
Cost 90
28.8 /90 = 32% on cost
Target sale price
90+28.8
= 118.8
Answer:
D. lowers the discount rate but not if it auctions more credit
Explanation:
Discount rate adjustment and Federal Reserve's auction have the following effects on reserves.
Discount rate adjustment: a <em>higher discount rate</em> will encourage investment in the US economy, thus leading to <em>increased reserves</em> as investment inflows increase.
On the other hand, a <em>lower discount rate</em> encourages investment outflow into other jurisdictions with higher yields, <em>thus reducing reserves</em>.
Auction: <em>auctioning more credit</em> will result in the movement of investment flows into the Federal Reserve (<em>an increase in reserves</em>) as investors invest in auctions. Vice versa.
Therefore, a mix of lower discount rate and not auctioning more credit will result in lower reserves.
