1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
What is variable cost per unit<br><br><br>​
SSSSS [86.1K]
Variable costs are the costs that change in total each time an additional unit is produced or sold. With a variable cost, the per unit cost stays the same, but the more units produced or sold, the higher the total cost. ... Although total fixed costs are constant, the fixed cost per unit changes with the number of units.
7 0
2 years ago
Read 2 more answers
Using word of mouth for finding a job is helpful because _____.
leonid [27]
So that you can talk to the person offering the job
7 0
2 years ago
Research suggests that people just care about getting a paycheck out of their jobs.
quester [9]

Answer (1)

<em>False</em>

Explanation:

Getting a paycheck is not what most people want out of their job, <em>studies have shown that some people, contrary to the general believe actually look for other things asides paycheck from their jobs.</em> Some of these factors that encourages people into finding fulfillment in their jobs includes permanent flexibility of the working time, commitment into to health and well being of the staffs by the employer of these people, etc. <em>This factors creates a sense of purpose in the workers, encouraging them to put their body and soul into the job without thinking too much about the paycheck.</em>

Answer (2)

<em>True</em>

Explanation:

<em>Different people have different reasons for working</em>, although some just work for the paycheck, others are driven by a sense of purpose among other things. To some people, the work setting provides a sort of belonging and gives them the impression of working in a team, which is what most people actually want.

Answer (3)

<em>2. Belongingness</em>

<em></em>

Explanation:

As stated, some workers just want the setting that provides a sense of belonging and security within a team. <em>This type of workers are not too concerned with the paycheck increase that comes with a promotion if it takes them away from their perceived team.</em>

8 0
2 years ago
The balance of Chiaki's average balance checking account at the beginning of the last cycle was $100, and the only transaction f
Ne4ueva [31]
The correct answer is $90
3 0
2 years ago
Read 2 more answers
You are considering the purchase of a certain stock. You expect to own the stock for the next four years. The current market pri
murzikaleks [220]

Answer:

The answer is: The expected rate of return from this investment is 26.68%

Explanation:

We are given the following cash flows for this operation:

  • Initial investment = -$24.50
  • Cash flow 1 = $1.25 (dividend year 1)
  • Cash flow 2 = $1.35 (dividend year 2)
  • Cash flow 3 = $1.45 (dividend year 3)
  • Cash flow 4 = $56.55 ($1.55 dividend year 4 + $55 stock's sales price)

Using an excel spreadsheet and the IRR function:

=IRR(value 1: value 5) =26.68%  

where

  • value 1 = -24.50
  • value 2 = 1.25
  • value 3 = 1.35
  • value 4 = 1.45
  • value 5 = 56.55

7 0
3 years ago
Other questions:
  • The company's total assets are $40,000. The following is a listing of the company’s accounts and account balances as of December
    14·1 answer
  • In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is stated as $20,000 and the i
    5·1 answer
  • The section of the continuity plan that provides instructions for all personnel is the:
    10·1 answer
  • The idea that individuals and organizations are accountable to a larger society is known as:_________
    12·1 answer
  • Kelly wants to save money for an emergency fund. She decides to take advantage of the high interest rates of the holiday club he
    13·1 answer
  • What is the area of a triangle base 20ft and the hight of 14ft​
    5·1 answer
  • Karla has graduated from high school this year and has a steady job. She feels ready to move into her own space and has $900 in
    10·1 answer
  • The manager of the customer service division of a major consumer electronics company is interested in determining whether the cu
    13·1 answer
  • On January 1, 2021, G Corp. granted stock options to key employees for the purchase of 87,000 shares of the company's common sto
    13·1 answer
  • Logan, a 50% shareholder in Military Gear Incorporated (MG), is comparing the tax consequences of losses from C corporations wit
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!