Some examples of opportunity costs that should be included in project analysis are that, skilled employees who are moved from an existing project to the new project causing a loss in the existing project.
Opportunity cost refers to what you have to give up to buy what you want in terms of other goods or services. Opportunity cost is a great tool for project selection in many organizations.
The opportunity cost is the difference between the net value of the path that was chosen and the net value of the best alternative that was not chosen.
There is an example of opportunity cost which should be included in the project analysis. The situation where skilled employees are moved from an existing project to the new project causing a loss in the existing project, should be analyzed.
Hence, the answer was given and explained above.
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Answer:
Explanation:
We don't have enough information to calculate the exact effect on the net operating income. For example, we will need the selling price and unitary variable costs. But we can calculate the effect on the fixed costs and selling variable costs.
Savings in fixed costs= $22,000
Increase in total variable costs= 13* 2400 units= $31,200
To decide whether it is convenient or not we need the information previously stated.
Answer:
D
Explanation:
A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.
A price floor increases producer surplus and reduces consumer surplus
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
Producer surplus = price – least price the seller is willing to accept
The dead weight loss of tax can be determined by calculating the reduction in total surplus as a result of the tax
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People donate to charitable organizations so as to:
- To do what is right.
- To support a cause.
- To to develop their skills.
<h3>Why is donating to charity so important?</h3>
The act of giving is one that leads to the feelings of joy and happiness.
Conclusively, Note that Helping others will make you to feels good as well as support a cause while still developing the skills of others.
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