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Mekhanik [1.2K]
2 years ago
10

If the firm is at point D and decides to increase the production of bike tires by 300 units, the opportunity cost will be truck

tires. If the firm is at point B and decides to increase the production of truck tires by 400 units, the opportunity cost will be bike tires.
Business
1 answer:
earnstyle [38]2 years ago
4 0

In a situation where the firm is at point D and an increase the production of bike tires by 300 units, the opportunity cost will be <u>200 truck tires.</u>

When the firm is at point B and decides to increase the production of truck tires by 400 units, in this case, the opportunity cost will be<u> 500 bike tires.</u>

Opportunity cost simply means the potential benefit that an economic entity loses when it engages in another activity.

Learn more about opportunity cost on:

brainly.com/question/481029

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Answer:

The value of the option to wait is $0.70,option A.

Explanation:

In calculating the value of the option to wait,I discounted all cash flows under both alternatives, using the discount rate of 12% as given in the question.

Option to start now gives net present value(positive return ) of $360.64 while the other one gives $361.34,invariably option to wait one year gives $0.70($361.34-$360.64) more than the option to start now.

The formula used in the calculating present value is PV=FV(1+r)^n

Where PV=present value

FV=future value

r=rate of interest

n=number of year

Find attached spreadsheet for detailed calculations.

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3 years ago
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Answer:

Variance (Unfavorable) (NZD 340,000)

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Budget Variance using exchange rate projected at the time of budget

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This is the term that is used to refer to the environment that is made up of the major forces that are both external and also uncontrollable that is used to influence the decision making process of a firm.

The macro environment is made up of such factors such as demographics, economy, technology, political and a lot more of other factors. They are used to control the decision making process in the nation. It is also referred to as the environment at large

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