How does opportunity cost affect decision making

1 answer:

7 0

Opportunity costs apply to many aspects of life decisions. Often, money becomes the root cause of decision-making. If you decide to spend money on a vacation and you delay your home's remodel, then your opportunity cost is the benefit of living in a renovated home.

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As long as total utility is increasing, we know that marginal utility is:

neonofarm [45]

Im not sure...maybee tuna?

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3 years ago

If washburn guitars were to lower the price of the maya pro dd75 to $2,499 from $2,699, sales of the guitar would increase 30 pe

inn [45]

The Washburn guitars reduces their price from $2,499 to $2,699 as a result of the sales of the product drastically increased by 30%, So this represents that the <u>product has an elastic demand.</u>

<h3>What do you mean by elastic demand?</h3>

When the price of a product has a massive effect on the quantity purchased is called Elastic demand. A product is stated to have an elastic demand if sales drop sharply in reaction to a growth in price, or sales spike whilst prices are decreased.

Thus, The Washburn guitars reduces their price from $2,499 to $2,699 as a result of the sales of the product drastically increased by 30%, So this represents that the <u>product has an elastic demand.</u>

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3 0

2 years ago

Using the 20/10 rule, calculate the maximum amount to borrow if your net yearly income is $75,000

Delvig [45]

Using the 20/10 rule: you should never borrow more than 20% of your annual net income and monthly payments shouldn't be more than 10% of your monthly net income.

In this situation, we know the yearly net income is $75,000.
First we want to multiply 20% by $75,000 = $15,000
$15,000 is 20% of your yearly net income.
This would be the most you'd want to borrow given the information provided.

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3 years ago

A $340,000 property sells at a 7ommission with a 50-50 co-brokerage split and a 50 gent split with her broker. what is agent's c

dusya [7]

The agent's commission is $5,950

A commission agent acts as a go-between for enterprises of all sizes when dealing with suppliers. A person in this position may operate in a variety of fields, including real estate, sales, and entertainment, as well as throughout the world. Additionally, a commission agent may simultaneously serve multiple companies.

An international agent who receives payment as a percentage of the sales they bring in. The Agent strictly complies with the sale terms specified to it by the Principal while making products available to potential customers in a certain territory (often a country). The Agent's and Principal's relationship is solely business-related; there is no employment connection between them.

To learn more about agent's commission here

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2 years ago

If the price of pepsi-cola increases from 50 cents to 60 cents per can and the quantity demanded decreases from 100 cans to 50 c

rosijanka [135]

This type of demand is classified as autonomous demand. Autonomous demand does not depend on other products but is due to increase in consumer usage by natural desire. This type of demand is relative to the needs of the consumer.

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3 years ago