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2 years ago

Define opportunity cost, please! Thank you!

2 answers:

6 0

Opportunity costs represent the potential benefits an individual, investor, or business misses out on when choosing one alternative over another.

Over [174]2 years ago

6 0

Answer:

It's when you lose one opportunity due to picking something else or you lose a whole experience because of a chose you made. For example, if I decided to work at McDonald's then instead of going to school,I've lost a lot of chances because I made this one choice.

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Assume that the hypothetical economy of Molpol has 8 workers in year 1, each working 1,200 hours per year (40 weeks at 30 hours

Harrizon [31]

Answer:

Answer for the question:

Assume that the hypothetical economy of Molpol has 8 workers in year 1, each working 1,200 hours per year (40 weeks at 30 hours per week). The total input of labor is 9,600 hours. Productivity (average real output per hour of work) is $10 per worker

Instructions: In parts a and b, round your answers to the nearest whole number. In part c, round your answer to 2 decimal places.

a. What is real GDP in Molpol? Suppose work hours rise by 2 percent to 9,792 hours per year and labor productivity rises by 5 percent to $10.5

b. In year 2, what will be Molpol's real GDP?

c. Between year 1 and year 2, what will be Molpol's rate of economic growth? percent

Is given in the attachment.

Explanation:

7 0

3 years ago

Variable costs of production $50 per unit Variable costs of sales and administration $25 per unit Fixed costs of production $100

malfutka [58]

Answer:

Number of units to be produced and sold= 7,000 units

Explanation:

Giving the following information:

Variable costs of production $50 per unit

Variable costs of sales and administration $25 per unit

Fixed costs of production $100,000 per year

Fixed costs of sales and administration $50,000 per year

Selling price= $100 per unit

Desired profit= $25,000

To calculate the number of units to be produced and sold, we need to use the break-even point formula:

Break-even point in units= (fixed costs + desired profit)/ contribution margin per unit

Fixed costs= (100,000 + 50,000)= 150,000

Unitary variable cost= (50 + 25)= $75

Break-even point in units= (150,000 + 25,000) / (100 - 75)

Break-even point in units= 7,000 units

7 0

3 years ago

Several factors affect a firm’s need for external funds. Evaluate the effect of each following factor and place a check next to

Studentka2010 [4]

Answer:

The firm increases its dividend payout ratio.

This will increase the need for external funds because with more funds going towards dividends, there will be less funds available to fund operations. The company will therefore be more probable of being in need of Additional funds.

The firm’s inventory turnover decreases, with no effect on the sales forecast.

If the firm's inventory turnover increases, it means that the firm is taking longer to sell off inventory. This will mean that the company will have to invest more in working capital to maintain these inventory levels. This will lead to a higher probability of them needing additional funds.

2. Yes, dividends still affect a firm’s AFN even though they are paid out of after-tax earnings.

Even though they are paid after-tax, they still eat into the funds that the business can be able to set aside to fund operations. So when dividends are paid, the need for AFN increases as well.

5 0

3 years ago

Builder and Owner agree that Builder will erect a fence for Owner for $1,500. Builder claims that the fence is taking longer tha

artcher [175]

Answer:

Owner owes Builder : B. $2,000.

Explanation:

A Liability is the present obligation of the entity, that arises as a result of past events, the settlement of which is expected to result in a cash outflow from the entity.

Initially, the Owners owes the Builder $,1500

For the fence to be completed on time, an addition of $500 was owed, upon the owner accepting this arrangement.

Thus, the total obligation owing to the Builder is $2,000.

3 0

3 years ago

Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Stock C Boom .15 .39 .49 .29 Goo

Maurinko [17]

Answer:

15.68%

Explanation:

Now to get the expected return of the portfolio, we need to find the return of the portfolio in each state of the economy. This portfolio is a special case since all three assets have the same weight. To find the expected return in an equally weighted portfolio, we can sum the returns of each asset and the we divide it by the number of assets, so the expected return of the portfolio in each state of the economy will be :

Boom: RP= (.13 + .21 + .39) / 3 = .2433, or 24.33%

Bust: RP= (.15 + .05 −.06) / 3 = .0467, or 4.67%

Now to get the expected return of the portfolio, we multiply the return in each state of the economy by the probability of that state occurring, and then sum. In so doing, we get

E(RP) = .56(.2433) + .44(.0467)

=.1568, or 15.68%

8 0

3 years ago