Answer: 2) increasing opportunity costs.
Explanation:
The Production Possibilities frontier is bowed out as it shows that for one more unit of a good to be produced, an additional unit of the other good must be given up.
This represents increasing opportunity costs because opportunity cost is the cost we incur for choosing one alternative over another. By producing more and more of one good, we give up more and more of the other good which means that our opportunity cost rises.
Answer:
It will lead to an increase in consumption of good X only if X is a normal good ( D )
Explanation:
If consumer has rational, monotonic and convex preference the decrease in price of good X will lead to an increase in consumption of good X only if X is a Normal good .
This is because the demand for Normal goods increases with increase in consumers income. therefore <em>a decrease in price will automatically lead to an increase in demand because of the increase in the purchasing power of the consumer's income.</em>
Answer:
Texia; Texia
Explanation:
A country has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries
Texia can produce 1000 units of food while Urbania can produce 500 units of food . Texia produces more food
Texia can produce 500 units of clothing while Urbania can produce 200 units of clothing. Texia produces more clothing
Texia has an absolute advantage in both activities
Answer:
Income statement using absorption costing.
Sales $756,000
Less Cost of Goods Sold
Opening Stock $0
Total Manufacturing Costs $655,000
Less Closing Stock ($104,800) ($550,200)
Gross Profit $205,800
Less Operating Expenses
Selling and administrative expenses:
Variable $35,000
Fixed $10,500 ($45,500)
Net Income $160,300
Explanation:
The Product cost is the to total of all manufacturing costs.
The Manger Has exercised <u>Concurrent Control</u> on Evan by taking the decision to retrain him.
Explanation:
Concurrent control as the name suggest is the type of control that takes place in the Real-time or at the time the mistake occur.It is a type of a ongoing control and is a continuous process.
This type of control is used to monitor those employees who directly interact with the customers
<u>For Example</u>: A restaurant waiter must be aware about the menu list(Starters,Main Course),A car sales man should be aware about the features of the car and its USP(Unique Selling Proportion)
