Answer:
Someone gives up going to see a movie to study for a test in order to get a good grade. The opportunity cost is the cost of the movie and the enjoyment of seeing it.
At the ice cream parlor, you have to choose between rocky road and strawberry. When you choose the rocky road, the opportunity cost is the enjoyment of the strawberry.
A player attends baseball training to be a better player instead of taking a vacation. The opportunity cost was the vacation.
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Answer: Default risk premium
Explanation:
The default risk premium is one of the type of the additional amount or payment that is usually calculated by using the effective concept as it is difference between the risk free rate and the overall debt interest rate.
The main objective of the default risk premium is make the additional type of payment in the form of compensation to the borrower and all an organizations or companies are indirectly paying the default risk premium.
According to the given question, the Default risk premium is the term which is used to represent the additional type of compensation which is specifically provided by the bond holder.
Therefore, Default risk premium is the correct answer.
<span>Adding a machine to the factory and producing another car would be the choices that decision makers could use marginal analysis to make effective decisions.</span>
Answer: $60
Explanation:
The optimal price for a monopoly firm is expressed by;
Price = Marginal Cost * ( Own Price Elasticity/ (1 + Own Price Elasticity))
Price = 10 * ( -1.2 /( 1 - 1.2)
Price = 10 * (-1.2/-0.2)
Price = 10 * 6
Price = $60
Answer:
Economic profit can be derived from calculating total revenues minus all of the firm's costs, Economic profit can be derived from calculating total revenues minus all of the firm's costs, including its opportunity costs. are two stark realities any business firm must recognize.
