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Anna [14]
3 years ago
5

Explain precisely why ‘Opportunity Cost’ is always a RELATIVE concept and is never to be construed in ABSOLUTE terms. In additio

n, why is the PPF function never strictly convex -what is the economic implication of strict convexity? You are free to provide appropriate examples of your choice.
Business
1 answer:
telo118 [61]3 years ago
3 0

Answer:

Opportunity costs are defined as the additional costs or benefits lost from choosing one activity or investment over another alternative. It is a relative concept because you cannot be 100% sure that the other investments or activities would have yielded a specific gain.

For example, when you calculate the economic cost of starting your own business, you consider your current salary as an opportunity cost. But what happens if you get fired (or the company closes), your opportunity cost would have been $0? Or how can you exactly measure your future salaries? Maybe in a couple of years you get promoted to manager, or maybe not?

The same applies to economies, since the opportunity cost of producing certain tradable goods is not always fixed, it might decrease or increase due to productivity or efficiency changes. But in order to calculate or determine we must include the most probable option.

In microeconomics, a strictly convex production possibilities frontier function must include a combination of both goods. In strict convexity, the second derivative f''(x) ˃ 0, so the PFF curve cannot be straight, it must have a slope.

When we calculate the opportunity costs of PPF, we usually try to determine which product has the lowest opportunity cost, but that is not an interior solution because both goods are not being produced (the curve is not strictly convex). On a strictly convex curve, as you approach the extremes the opportunity cost of producing one good is high, but on the center the opportunity cost is much lower.

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Discuss the effectiveness of Red Bull sponsorships, advertisements, personal selling strategies, promotion, events, and public r
Molodets [167]

Answer:

Explanation:

Red bull engaging in sponsorship shows they are utilizing the well packaged Red bull's marketing budget. But there should be some level of caution in either co- sponsoring or being the sole sponsor for certain sports, especially sports with high risk or danger. While sponsoring stunts like Bull stratos is a good way to make high publicity for their brand (Red bull) but if something bad happens in the course of the stunts, the brand could be connected to the tragedy which would be an everlasting bad label on the company. The company might be seen as insensitive for sponsoring such a sport that involves high risk.

Red bull sponsors X-treme sports and as a results of this sponsorship their brand have enjoyed having more time of product exposure and placement because the sponsorship will give the brand more attention with the consumers.

While it is good they go on with their various sponsorships, they must also be careful on some sports or events that involves high risk.

8 0
3 years ago
What happens if the amount of Bad Debt Expense is overstated at year end? A : Net income will be overstated. B : Allowance for D
Yuri [45]

Answer:

D. Net Accounts Receivable will be understated

Explanation:

5 0
3 years ago
If a business is in need of working capital, one option is to use a(n) ________ that will buy the company's account receivables
vesna_86 [32]

Answer:

factoring company

Explanation:

Factoring companies purchase your company's invoices (account receivables). When they do that, your company promptly receives a cash advance, instead of waiting for the usual 60, 90 day period to receive the full payment amount. Afterward, the factoring company collects the payment from your clients.

All of that is done for a fee to the factoring company (deducted from the full payment amount) and mostly with clients with whom it is normal to have longer payment periods. Factoring is an essential way to get bigger working capital.

5 0
3 years ago
Read 2 more answers
Question 14 of 20
charle [14.2K]

Answer:

C

Explanation:

8 0
3 years ago
Fred Stone is an employee of Henrock Company. During the first part of the year, Stone earned $4,340 while working in State Q. F
lyudmila [28]

Answer:

$280

Explanation:

SUTA is a synonym for State Unemployment Tax paid by employers and employees , and used by the government to provide the insurance expenditures for the unemployed citizens

The reciprocal arrangement exempts the tax payer from his former country of work. H e will be taxed in the new country of work at the applicable rate

SUTA ceiling earning = $7000

SUTA rate = 4.0%

SUTA = $280

5 0
3 years ago
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