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3 years ago

When would sunk costs be irrelevant for current decision making?

Business

1 answer:

UkoKoshka [18]3 years ago

7 0

Sunk cost are always irrelevant when making current decisions.

Sunk cost is the cost that has already been incurred and cannot be recovered. Sunk cost should not be considered when making future economic decisions.

An example of sunk cost: A farmer buys a piece of land for $100,000. He plants on the land. Years later, the land becomes infertile. The farmer is considering selling the land. In this question, the cost of the land is sunk cost. The sunk cost is $100,000. The farmer should not consider this cost when determining if to sell the land or not.

To learn more about sunk cost, please check: brainly.com/question/17920044?referrer=searchResults

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Christine recently earned a promotion at work, raising her income by 40%. As a result, she now attends twice as many concerts as

lutik1710 [3]

Answer:

2.5

Explanation:

If Christine now attends twice as many concerts, her percent increase in demand for concerts was 100%. Christine's income elasticity of demand for concerts is given by the percentage change in demand divided by the percentage change in income:

$E = \frac{\%D}{\%I}=\frac{100\%}{40\%}\\ E=2.5$

Christine's income elasticity of demand for concerts is 2.5.

6 0

4 years ago

During the ___________ stage of the product life cycle, firms either position themselves for a niche segment of diehard consumer

Sonbull [250]

Answer:

decline

Explanation:

Based on the information provided within the question it can be said that the stage that is being mentioned is the decline stage of the product life cycle. This stage is classified as the terminal stage in which sales begin to plummet to the point where production completely stops. Therefore at this point a company needs to make a decision on whether to continue producing for a niche segment (if it exists) or completely exit the market for that product.

6 0

4 years ago

What monatization model requires a massive user base to generate significant revenues?

elena-s [515]

Answer:

Advertising

Explanation:

Advertising is a great monetization model as one can make lots of money from placing adverts on your apps or website. However, to make significant revenues from advertising, it is expected that many users of your app or visitors to your website click these ads. Thus, it is required that one must have a massive user base to be able to make substantial revenue from advertising.

4 0

3 years ago

Sue now has $490. How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding?

Alina [70]

Answer:

c.$941.10

Explanation:

Calculation for How much would she have after 8 years

Using this formula

FV = PV(1+i)^n

FV represent future value

PV represent present value

i represent interest rate

n represent number of periods

Let plug in the formula

FV = 490(1 + .085)^8

FV= $941.10

Therefore How much would she have after 8 years will be $941.10

3 0

3 years ago

Anvils Works’ requires, on average, 2800 tons of aluminum each week, with a standard deviation of 1000 tons. The lead time to re

photoshop1234 [79]

Answer: 28,000 tons

Explanation:

Given the following ;

Average Weekly need = 2,800 tons

Lead time = 10 weeks

Average amount of tons on order = 10 × 2800 = 28,000 tons.

The on order quantity may be explained as a purchase order indicating the status of ordered goods or items. These purchase order status is in effect once items goods ordered have been been perfected and in-transit. The purchase order status remains valid until the goods are received.

The lead time refers to the time range or period between the initiation and receipt or completion stage of an order.

4 0

3 years ago