Answer:
Productive projects mean people are benefitting from the projects, a counterproductive project would mean resources are being wasted and no one is benefiting. When property rights are well defined and enforced, businesses in a market economy will then have a strong incentive to undertake productive projects.
Explanation:
Answer:
The correct answer is C.
Explanation:
Giving the following information:
The actual quantity of direct materials purchased 20,000 pounds.
standard price of direct materials $ 7.00 per pound.
Material price variance $ 5,000 Unfavorable.
Material quantity variance S 2,500 Favorable.
Direct material price variance= (standard price - actual price)*actual quantity
-5,000= (7 - AP)*20,000
5,000= 140,000 - 20,000AP
20,000= 145,000AP
Actual price= 7.25
Answer:
B) dividing the change in total cost by the change in output
Explanation:
Marginal cost(MC) is the cost incurred as a result of producing additional units of goods and services. It is calculated by dividing a change in total cost by a change in output.
That is,
Marginal cost(MC)= change in total cost(TC)/ change in output
Total cost(TC): This is the addition of fixed and variable cost in production.
Total cost(TC)= fixed cost (FC)+variable cost (VC)
Fixed cost (FC) are cost that doesn't change during the production process such as buildings, machineries and furniture.
Variable cost (VC) are cost that changes or are used up during production process such as raw materials.
Answer:
It will incur an Opportunity cost of $8,000.
Explanation:
It will incur the opportunity cost of $8000 because the additional unit produces by the company then the additional revenue that is generated will be equal to the amount (25 - 20) x 12,000 = 60,000. Since the additional cost, that incurs for the production of 12000 units is 52000. Therefore the profit earned is $8000.
So if the company does not produce it then it will lose the profit of $8000.
