Answer:
Implicit costs do not require a direct monetary outlay by the firm, whereas explicit costs do.
Explanation:
Rent, salary, and other operating expenses are considered explicit costs. They are all recorded within a firm's financial statements, meaning they are present and clearly shown or reported as a separate cost. The main difference between the two types of costs is that implicit costs are opportunity costs, meaning that it is present but it is not initially shown or reported as a separate cost, while explicit costs are expenses paid with a company's own tangible assets. In other words, explicit costs are always shown, implicit costs are not, at least initially, exactly like the meaning words suggest.
Answer:
d. Charities
Explanation:
From the question, we are informed about the Supposed chicken farm which uses a nearby stream to dispose of the wastes released by its chickens. These wastes flow downstream into a lake that has become thick with algae and polluted due to the minerals in the waste matter. The local office of a nonprofit environmental organization successfully lobbies state regulators to stop the farm's pollution. In this case, the types of private solutions to the externality of pollution that has occurred is charity. Private solutions to externalities can varies from charities, business mergers as well as moral codes, all working at self interest of the relevant parties. according to Coase theorem, at low transaction cost two parties can reach efficient outcome after bargaining when externality are present. Charity can be regarded as generosity as well as helpfulness towards those that are less privilege or that are needy and cannot raise their voice.
Answer:
Depreciation expense on third year is $2,400
Explanation:
First, we must compute the depreciation expense for the first 2 years.
($18,000 - 2,000)/5years = $3,200 depreciation expense per year.
Second, let’s compute the net book value before the adjustment.
$3,200 x 2 years = $6,400 (total depreciation for 2 years)
$18,000 - $6,400 = $11,600 (Net book value before adjustment)
Finally we can now compute the Depreciation expense on the third year.
($11,600 - $2,000) / 3+1
$9,600/4 = $2,400 (new depreciation expense on third year)
A simple discount note results in i<span>nterest that are deducted in advance, this can just be simply called a discount. </span><span> It is usually being confused with markdown. </span><span>Discount is a deduction in the price of a product base on the purchase of the customer while markdown is a reduction of price based on inability to be sold. </span>
Answer:
1) Flitcom Corp (Beta = 0.60)
2) Tobotics Inc. (s.d. = 11%)
Explanation:
1. Suppose all stocks in Ariel's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio?
The indicator of the market risk is the Beta. It relates the variation of the price or value of the stock relative to the variation of the total stocks in the market.
The value of Beta indicates how risky is a stock relative to the risk of the market. A Beta =1 means it has the same systemic risk as the market. If Beta<1, the stock is less volatile than the market, and if Beta>1, it is more volatile than the market.
Then, the stock with less value of Beta will contribute the least risk to the portfolio.
This is the case of Flitcom Corp (Beta=0.60)
2. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk?
The stand-alone is reflected by the standard deviation. The less the standard deviation, the less risk of the stock (measured only the stock variability).
This is the case of Tobotics Inc. (s.d. = 11%)
