Answer:
d. every decision has an opportunity cost.
Explanation:
Opportunity cost is the next best option forgone when one alternative is chosen over other alternatives.
Accounting cost only includes explicit cost.
Economic cost includes both implicit and explicit Cost.
economic decisions dont include sunk costs.
I hope my answer helps you
Explanation:
The Answer Is C. That's It
Answer:
C. The firm will not change output but earn a lower profit
Explanation:
So when there is a lump sum tax imposed on the firm, it would cause the extra costs added to the firm's fixed costs. As the variable costs are not affected, the marginal cost remains unchanged.
However, it would shift the ATC (average total cost) curve upward due to the increase in fixed costs - leading the loss.
So that, the firm will not change the output but earn lower profit.
<span>The
solution would be like this for this specific problem:
12,000 * $18
= $216,000
So the amount that the building should be recorded by the Merritt Company is </span>$216,000. I hope this helps and if you have any further questions, please don’t
hesitate to ask again.