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lora16 [44]
3 years ago
11

Explain one opportunity cost of a private limited company deciding to award a pay increase to

Business
1 answer:
Anuta_ua [19.1K]3 years ago
4 0

Answer:

see below

Explanation:

Opportunity costs represent the sacrificed benefits in a decision. when choosing between alternatives, people can only enjoy the benefits from the chosen option. The advantages from the other alternatives not selected are foregone. The missed benefits from the options not selected are the opportunity costs.

Awarding employees with a pay increase will cost the private limited company money. The company could have spent that money in different other ways. For example, instead of awarding a pay increase, the company could have invested in new modern machinery, invested in shares of another company, or opened another branch. Assuming buying shares was the next best alternative to awarding pay rise, the missed dividends, and capital gains from shares not bought is the opportunity cost.

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Because of his business's recent success, Sam has decided to expand his Sam's Swimming Pool Cleaning to include another branch.
ivann1987 [24]

Answer: initially Sam gross profit would drop. But overtime when he starts gaining customers in his new branch added to the already existing customers in his old branch there would a very large gross profit increase.

Explanation: Gross profit is the percentage of revenue a company retains after accounting for cost of goods/services.

In this case payment of staffs in both the old and new branches would be accounted for, with the new branch still very much dependent on the old branch for payment of staff until it can get its own customers, only then would the new branch be able to be self reliant and also make profit.

6 0
4 years ago
Read 2 more answers
Frank has an auto policy with a coverage limit of $30,000 and a deductible of $1,000. He gets into an accident and the damages t
irakobra [83]

Answer:

$1000

Explanation:

Given the policy coverage = $30000

The amount of deductible = $1000

Total damage of the car when the accident occurred = $6200

Below is the calculation to find the amount that Frank has to pay:

The amount payable by Frank out of pocket = Deductible amount

The amount payable by Frank out of pocket = $1000

4 0
3 years ago
Assume there are two people in a society. Person A is willing to pay $140 to have one unit of a public good produced and Person
Shtirlitz [24]

Answer:

$300

Explanation:

Given:

Society A

Society B

Society A will pay $140 per unit  

Society B will pay $160 per unit  

Commonly pay $140 for two units produced.

Computation:

Society will pay total amount for the public goods = $160 + $140  

Society will pay the total amount for the public goods = $300

Therefore, $300 Is the total amount paid by society.

7 0
4 years ago
Does this​ "stiff competition" mean that the demand curve for​ McDonald's Chicken McNuggets is​ horizontal? Briefly explain.
blagie [28]

Answer: I found the complete question on Google:

By 2017, McDonald's had stopped selling Chicken McNuggets and other products made from chickens fed antibiotics. The change increased McDonald's costs, but an article in the Wall Street Journal noted that "...McDonald's ability to raise its prices is limited because of stiff competition."Source: David Kesmodel, Jacob Bunge, and Annie Gasparro, "McDonald's to Curb Antibiotics in Chicken," Wall Street Journal, March 4, 2015. Does this "stiff competition" mean that the demand curve for McDonald's Chicken McNuggets is horizontal? Briefly explain.

And the correct answer is: "B. ​No, the demand curve is not horizontal because Chicken McNuggets are not identical to other chicken products.".

8 0
3 years ago
If The Wall Street Journal lists a stock's dividend as $1, then it is most likely the case that the stock: Multiple Choice pays
REY [17]

Answer:

paid $.25 per share per quarter for the past year

Explanation:

A stock is ownership rights purchased by investors in a public company. Holders of stock are called stockholders and they are regarded as owners of the company.

Stockholders are paid dividends. Dividends are a proportion of a company's profits paid to shareholders.

If the stock's dividend is $1, it means it either paid $1 the past year or paid $.25 per share per quarter for the past year

8 0
3 years ago
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