Answer:
The employees in Mexico can either produce 2 cars or 50 bushels of wheat.
This means that the opportunity cost of producing 50 bushels of wheat is 2 cars.
For 1 bushel of wheat therefore;
= 2/50
= 0.04 cars
Opportunity cost of producing a car in Mexico will be;
= 50/2
= 25 bushels of wheat.
The opportunity cost of producing a car in Mexico is 25 bushels of wheat, and the opportunity cost of producing a bushel of wheat in Mexico is 0.04 cars.
Answer:
vertical integration
Explanation:
The plant owners would have to adopt a vertically integrated organization because the plant is not redeployable to other uses and is dependent on the supply chain/complementary assets. Vertical integration occurs when an organization owns and controls it's distribution or supply chain in order to maximise profits and reduce costs or inefficiency. By controlling the supply chain, the chain of distribution of the coal mine tonnage can be improved in terms of efficiency and value in revenue.
Answer:
Equilibrium Income = 400
Explanation:
Economy is at equilibrium where :
AD (i.e = C + I) = AS (i.e = C + S)
C + I = C + S
I = S
Given I = 80 , S = -80 + 0.4Y
Putting in formula,
80 = -80 + 0.4Y
80 + 80 = 0.4Y
160 = 0.4Y
Y = 160/0.4
Y = 400
Answer:
$155,000
Explanation:
Given the information above,
Depreciation charge (straight line) = (Cost - Residual value) ÷ Estimated useful life
Therefore,
2021 Depreciation charge = ($2,635,000 - $0) ÷ 17
= $155,000
The journal entry to correct the error will include a credit to accumulated depreciation of $155,000
Answer:
assembly labor
Explanation:
Overhead costs are the costs incurred in the operation. It is also known as operating expenses. The expenses excluding the expense of the manufacturing, selling and in providing the service are included in the overhead costs. It depends upon the nature of the business which decides the overhead cost. Rent, salaries, utilities, office supplies, and office equipment are some of the examples of overhead costs.
