Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
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Answer: Economic Growth, Employment opportunities, Standard of living improvement.
Explanation:
Macroeconomics is a branch of economics that deals with the structure, performance, behavior, and the decision-making of the economy as a whole. It includes the regional, national, and the global economies.
Expanding production will help the economy in the following ways:
1. Provision of employment opportunities: An increase in production will lead to more goods and services being offered. This will in turn, lead to more workers who would be needed for production.
2. Increase in standard of living: There will be an increase in the standard of living for people that were not employed before and now gainfully employed due to the expansion.
3. Economic growth: Economic growth is the increase in the goods and services in the economy. Increase in production will enhance economic growth.
Answer:
The relevant cost of the 150 kilograms of the raw material when deciding whether to proceed with the special project: $979.
Explanation:
We do not use the original cost $2,236 because it is sunk cost.
We do not use market value because Otool Inc. does not either incur this cost nor sacrifice any benefit from not buying at market price.
The relevant cost of these raw material should be the benefit sacrificing from not selling the raw material, instead using it in the project; calculated as:
Selling price x Amount sold - Cost of delivery = 7.1 x 150 - 86 = $979.
Thus, the answer is $979.
Answer:
Remain same
Explanation:
In this situation, China makes tablets and smartphones only. The equipment used to manufacture these two products is nearly the same, the same collection of tools is equally useful in manufacturing both smartphones and tablets. So there is the constant opportunity cost of both commodities.
Resources are similarly appropriate for the manufacturing of two varied goods at a constant opportunity cost.
Therefore, the opportunity costs for additional smartphone remains the same.
Someone must write a check
