Answer:
A.) Project A only
Explanation:
Given that
For project A
Pay back = 2.9 years
Net present value = $4,200
For project B
Pay back = 3.1 years
Net present value = $26,400
Based on the above information and payback decision rule, The project A should be accepted as it it contain less period compared to the project B i.e 2.9 years to 3.1 years
Hence, the correct option is a.
Answer:
D. produces output and earns an economic profit.
Explanation:
The firm will produce as making the product will pay the cost of the units produced with the current market price of the final good.
As the price is above the average total cost the firm will also earn an economic profit (that is after the accounting profit of explicit cost we subtract the opportunity cost with are implicit in any business and even there, the company manages to get a profit.
Answer:
the opportunity cost per unit is $19
Explanation:
The computation of the opportunity cost per unit is shown below:
The opportunity cost per unit is
= Selling price per unit - variable cost per unit
= $34 - $15
= $19
Hence, the opportunity cost per unit is $19
The same should be considered and relevant
We simply deduct the variable cost per unit from the selling price per unit so that the opportunity cost could come
Answer:
yes, however, it is legal if congress gives consent.
Explanation:
Article I, § 10, clause 2 of the United States Constitution, known as the Import-Export Clause, prevents the states, without the consent of Congress, from imposing tariffs on imports and exports above what is necessary for their inspection laws and secures for the federal government the revenues from all tariffs on imports and exports. Several nineteenth century Supreme Court cases applied this clause to duties and imposts on interstate imports and exports. In 1869, the United States Supreme Court ruled that the Import-Export Clause only applied to imports and exports with foreign nations and did not apply to imports and exports with other states, although this interpretation has been questioned by modern legal scholars.
Answer:
$8,600
Explanation:
The net income year 1 was $21,200
The dividend paid in year 1 was $12,600
Therefore the retained earnings at the end of year 1 can be calculated as follows
= beginning retained earnings + net income - Dividend
= $0 + $21,200-$12,600
= $21,200 - $12,600
= $8,600
Hence the retained earnings at the end of year 1 is $8,600
