Answer:
E. the more of something we produce, the greater is the opportunity cost of producing an additional unit
Explanation:
Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
An example to illustrate increasing opportunity cost. Let us assume that Emily can use her leisure time to either rest or make spaghetti. If Emily uses 1 hour to make spaghetti, she forgoes 1 hour that she could have spent resting. If she spends 2 hours making spaghetti, she forgoes two hours of rest. Her opportunity cost keeps increasing the longer she spends making spaghetti.
I hope my answer helps you
Answer:
I would buy the APPLE stock
Explanation:
Microsoft stock price = $173
dividends earned = $4, $5 and $5.5
value after 3 years = $190
Apple stock price = $285
Dividends earned = $5.5, $8.5 and $10.5
value after 3 years = $330
Applying the dividend discount model
IVO = present value of dividend + present value of terminal price
for Microsoft
IVO = ( 4/1.1 + (5/(1.1/2)) + ( 5.5/(1.1/3)) + ( 190/(1.1/3))
= $154.65
for Apple
IVO = ( 5.5/1.1 + ( 8.5/( 1.1/2)) + (10.5/(1.1/3)) + ( 330/(1.1/3))
= $267.8
Note: the IVO's are less than the current price of the stocks ( IVO = the intrinsic value of the shares ) but Microsoft shares are overpriced compared to apple
Answer:
Explanation:
Tax is a compulsory contribution levied by the government on income earners and the profits of those in business in order to raise funds for public expenditures. It comes in various forms as listed.
Federal income tax : Collected from citizens who pay up to 39.6% of their earnings
Medicare Tax: Used to support health care costs for retiree
State income tax : Collected from citizens in most state
Social security tax: Used to financially support retired people and people with disabilities
Local income tax: Collected by towns and cities to fund city program
Answer:
B. charging a retainer fee
Explanation:
Investment advisers are prohibited from doing all of the following except for charging a retainer fee. A retainer fee is an specific amount of money that the client pays to the professional upfront so that his/her services are secured and always available when needed. Investment Advisers can charge this fee so that the client's can always get their service as soon as it is needed.
Cost, which does not involve cash outlay is called : Imputed Cost
Imputed cost another term for opportunity cost , which is the amount of cost that indirectly incurred to you as the result of a decision making. This type of cost usually does not directly affect the amount of your cash
