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zubka84 [21]
2 years ago
13

The law of increasing opportunity costs Multiple Choice applies to land-intensive commodities but not to labor-intensive or capi

tal-intensive commodities. results in straight-line production possibilities curves rather than curves that are bowed outward from the origin. may limit the extent to which a nation specializes in producing a particular product. refutes the principle of comparative advantage.
Business
1 answer:
yan [13]2 years ago
3 0

Answer:

may limit the extent to which a nation specializes in producing of a particular product.

Explanation:

Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.

Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.

For instance, if you decide to invest resources such as money in a food business (restaurant), your opportunity cost would be the profits you could have earned if you had invested the same amount of resources in a salon business or any other business as the case may be.

The law of increasing opportunity costs can be defined as a principle in business which states that, if an organization or business firm continually raise (increase) its level of production, its opportunity cost also increases (rises).

Consequently, this may limit the extent to which a nation or country in any part of the world specializes in producing of a particular product so as to reduce or lower its opportunity cost.

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A building is an example of a _____ because it is a cost that does not change as output changes. fixed cost variable cost market
Anna11 [10]
The answer to this question is "Fixed Cost." this is because it doesn't change so it's fixed on one price!
6 0
3 years ago
Read 2 more answers
Doogan Corporation makes a product with the following standard costs:
AveGali [126]

Answer:

Direct material quantity variance= $2,170 unfavorable

Explanation:

<u>To calculate the direct material quantity variance, we need to use the following formula:</u>

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (2*5,000 - 10,310)*7

Direct material quantity variance= $2,170 unfavorable

4 0
2 years ago
You are faced with the following alternative choices on Saturday afternoon. You can only do one of these activities. None of the
garri49 [273]

Answer:

Missing out on the benefits I get from working out using exercise equipment in my garage.

Explanation:

When an option is chosen from alternatives, the opportunity cost is the "cost" incurred by not enjoying the benefit associated with the best alternative choice. The New Oxford American Dictionary defines it as "the loss of potential gain from other alternatives when one alternative is chosen." Since Choice B is the next best choice to hiking, missing out on the benefits of working out will be my opportunity cost.

3 0
2 years ago
Suppose that an investor with a 10-year investment horizon is considering purchasing a 20-year 8% coupon bond selling for $900.
leonid [27]

Answer:

8.67%

Explanation:

PMT (Semi-annual coupon) = par value*coupon rate/2 = 1,000*8%/2 = 40

N (No of coupons paid) = 10*2 = 20

Rate (Semi-annual reinvestment rate) = 7%/2 = 3.5%

Future value of reinvested coupons = FV(PMT, N, Rate)

Future value of reinvested coupons = FV(40, 20, 3.5%)

Future value of reinvested coupons = $1,131.19

FV = 1,000

PMT (Semi-annual coupons) = 40

N (No of coupons pending) = 10*2 = 20

Rate (Semi-annual YTM) = 9%/2 = 4.5%

Price of the bond after 10 years = PV(FV, PMT, N, RATE)

Price of the bond after 10 years = PV(1000, 40, 20, 4.5%)

Price of the bond after 10 years = $934.96

Total amount after 10 years = Future value of reinvested coupons + Price of the bond after 10 years

Total amount after 10 years = $1,131.19 + $934.96

Total amount after 10 years = $2,066.15

Amount invested (Price of the bond now) = $900.

Total Annual Return = [(Total amount after 10 years / Amount invested)^(1/holding period)] -1

Total Annual Return = [($2,066.15/$900)^(1/10)] -1

Total Annual Return = [2.295722^0.1] - 1

Total Annual Return = 1.08665561792 - 1

Total Annual Return = 0.08665561792

Total Annual Return = 8.67%

7 0
3 years ago
On March 1, 2022, Cullumber Company acquired real estate, on which it planned to construct a small office building, by paying $8
11111nata11111 [884]

Answer:

$101,200

Explanation:

the cost of land = purchase price of the land + razing expenses - sales of salvaged materials + attorney's fees + broker's fees = $86,000 + $9,700 - $4,400 + $1,500 + $8,400 = $101,200

The cost of the driveways and parking lot are recorded separately (as land improvements), not under cost of land because they can be depreciated.

Architect's fees are generally included in the construction costs of the building, not in the land cost. The architect's fees are covered before the construction starts because you need the blueprints in order to start the construction.

6 0
3 years ago
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