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3 years ago

Explain how opportunity cost is different for economic goods and free goods

Business

1 answer:

Pepsi [2]3 years ago

5 0

Answer:

The difference is that free goods have exactly zero opportunity cost, because they cost nothing, their price is zero, and their use is non rival, and non excludable, meaning that if a person uses a free good, that person does not prevent any other person from using the good.

Economic goods, on the other hand, are goods that have a price, and that have a cost of production. Besides they are rival and/or exclusionary. The opportunity cost of an economic good varies depending on the good, but it is never zero.

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Henrique Correa's bakery prepares all its cakes between 4 A.M. and 6 A.M.so they will be fresh when customers arrive. Day-old ca

masha68 [24]

Answer:

The optimal stocking level for the bakery is cakes 27.

Explanation:

Cost c = $ 7

Selling price p = $ 10

salvage value s = $ 5

Mean = 25

Standard deviation \sigma = 8

Cu = underage cost

= p-c

= $10 - $7

= $3

Co = overage cost

= c-s

= $7 - $5

= $2

P\leq C_{u}/(C_{u}+C_{o})

P\leq3/(3+2)

= 0.6

By using normsinv() function in excel we to find the correct critical value

The Z value for the probability 0.6 is 0.2533

The optimal stocking level is

=\mu +z\sigma

= 25 + 0.2533 *8

= 27.02

The optimal stocking level of bakery is 27.02

Therefore, The optimal stocking level for the bakery is cakes 27.

8 0

3 years ago

On January 1, 2017, Crown Company sold property to Leary Company. There was no established exchange price for the property, and

Mademuasel [1]

Answer:

Leary Company

The carrying value of the notes payable at December 31, 2017, after the first payment is made (assuming that the effective-interest method is used) is:

= $320,000

Explanation:

a) Data and Calculations:

0% Note payable = $400,000

Payment period = 5

Annual installmental payments = $80,000

Prevailing rate of interest for similar note = 8%

Schedule

Period PV PMT Interest FV

1 $-591,650.08 $80,000.00 $-47,332.01 $558,982.09

2 $-558,982.09 $80,000.00 $-44,718.57 $523,700.66

3 $-523,700.66 $80,000.00 $-41,896.05 $485,596.71

4 $-485,596.71 $80,000.00 $-38,847.74 $444,444.44

5 $-444,444.44 $80,000.00 $-35,555.56 $400,000.00

Total $400,000.00 $-208,349.93

Carrying value

Ending value = $400,000

Interest expense -47,332.01

Cash repayment -32,667.99

Carrying value = $320,000

6 0

3 years ago

Are contractually-stipulated cooperation programs between unions and management a realistic and workable concept? Why or why not

krok68 [10]

Yes these contractually-stipulated programs between the both parties are actually a realistic and workable concept. It is important for both union and employer because when there is a situation of disagreement this contract will provide a resolution to both of them saving time and resources.

4 0

3 years ago

Some of the considerations you might use to analyze the data include

Semenov [28]

B characteristics of the children etc

6 0

3 years ago

You want to go the Six Flags amusement park. The ticket price to enter and enjoy the rides in Six Flags is $65. You live in Rich

Lyrx [107]

Answer:

Results are below.

Explanation:

The opportunity cost is the amount of money that you won't earn when choosing one option over another. In this case, one option makes you expend money and the other earn money.

Opportunity cost= 12*4 + 25

Opportunity cost= $73

Now, the total cost incorporated what you will expend in Six Flags:

Total cost= 65 + 40 + 73

Total cost= $178

4 0

3 years ago