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3 years ago

At higher prices, what happens to the opportunity cost?

Business

1 answer:

kirill115 [55]3 years ago

8 0

B. i think it gets larger bc law of demand says that w higher prices, buyers will demand less of a product.

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You wish to retire in 20 years, at which time you want to have accumulated enough money to receive an annual annuity of $24,000

den301095 [7]

Answer:

$3,286.52

Explanation:

Interest rate per annum = 12.00%

Number of years = 25

Number of compounding per per annum = 1

Interest rate per period (r) = 12.00%

Number of periods (n) = 25

Payment per period (P) = $24,000

PV of $24,000 payments after 20 years = P * [1 - (1/(1+r)^n)]/ r

PV of $24,000 payments after 20 years = 24000*[1-(1/(1+12%)^25]/12%

PV of $24,000 payments after 20 years = $188,235.34

Interest rate per annum = 10.00%

Number of years= 20

Number of payments per per annum = 1

Interest rate per period (r) = 10.00%

Number of periods (n) = 20

Future value of annuity (FVA) = $188,235

Annual contribution (P) = FVA/ ([ (1+r)^n - 1] / r)

Annual contribution (P) = 188235/(((1+10%)^20-1)/10%)

Annual contribution (P) = $3,286.52

5 0

3 years ago

For a natural monopoly to exist

vfiekz [6]

Answer:

The correct answer is A

Explanation:

Natural monopoly is the kind of monopoly which exists because of the high start up costs as well as the powerful economies of scale for conducting or performing a business in a particular industry.

And for this type of monopoly to exist , a firm or business need that the long run average cost curve will exhibit the economies of scale by the relevant range of the market demand.

3 0

3 years ago

Price Manufacturing assigns overhead based on machine hours. The Milling Department logs 1,800 machine hours and Cutting Departm

kifflom [539]

Answer and Explanation:

The Journal entry is shown below:-

Work in progress Dr, $24,000

To Manufacturing Overhead $24,000

(Being the overhead assigned is recorded)

For recording this we debited the work in process as it increased the assets and credited the manufacturing overhead for assigning the overhead

Working note

Overhead amount = (Milling Department + Cutting department) × Overhead rate

= (1,800 + 3,000) × $5

= $4,800 × $5

= $24,000

5 0

3 years ago

Determine the amount of producer surplus generated in the following situation. SoHee advertises her car for sale in the usedca

abruzzese [7]

Answer:

The answer is: $0

Explanation:

Producer surplus is the difference between the maximum price a suppler is willing and able to sell its product and the price of the product.

SoHee was willing to sell her car for at least $1,500, but she wasn't able to do so since the fair market price is $1,200. So, producer surplus is $0.

6 0

3 years ago

Jerry, a partner with 30 percent capital and profits interest, received his Schedule K-1 from Plush Pillows, LP. At the beginnin

GarryVolchara [31]

Answer:

$63,500

Explanation:

Calculation to determine Jerry's adjusted basis in his partnership interest at the end of the year

Using this formula

Partnership interest adjusted basis =Partnership interest+Cash contribution+Long-term capital gain+Qualified dividends -Reduction in partnership debt -Non-deductible expenses-Reported an ordinary loss

Let plug in the formula

Partnership interest adjusted basis=$42,000+ $28,000 + $4,800 + $3,800 - $5,800 - $2,300 - $7,000

Partnership interest adjusted basis = $63,500

Therefore Jerry's adjusted basis in his partnership interest at the end of the year will be $63,500

7 0

3 years ago