Answer:
3. the more resources a society uses to produce one good, the fewer resources it has available to produce another
Explanation:
The production possibilities frontier (PPF) is a curve that shows the trade-offs that a person, firm, or country has to incurr when producing two goods.
As economic agents have limited resources, they can only produce a limited amount of one good over the other.
If more resources are devoted to the production of one good, for example, butter, then, less resources are left for the production of the other good, for example, guns.
With each additional unit of butter produced, more resources are spent, which means that less resources are available to produce guns.
In other words, the opportunity cost of producing butter increases as more butter is made, causing the PPF to bow outward.
Answer:
The correct answer is A: The sale of a security with a commitment to repurchase the same security at a specified future date and a designated price
Explanation:
A repurchase agreement (Repo) is a short term agreement between two parties in which one party sells the other party security (usually government securities) a<u>t a price with an agreement to repurchase the exact same security at a fixed time and price.</u> The maturity for a repurchase agreement can be from overnight to a year. The
Repurchase agreements are generally considered safe investments because the security in question functions as collateral, which is why most agreements involve U.S. Treasury bonds. The transaction allows the dealer to raise short term capital. It is a short term money market instrument in which two parties agree to buy or sell a security at a future date.
Answer:
$136,190
Explanation:
The computation of computer cost allocated to Division B is shown below:-
Computer cost allocated to Division B = Computer service cost × Computer time of Division B ÷ Total computer time.
= $260,000 × 220 ÷ (200 + 220)
= $260,000 × 220 ÷ 420
= $260,000 × 0.5238
= $136,190
Therefore for computing the computer cost allocated to Division B we simply applied the above formula.
Answer:
B. a decrease of $30,000
Explanation:
The computation of company’s overall profit is shown below:-
To continue = Contribution margin - Fixed cost
= $65,000 - $70,000
Loss = $5,000
To Discontinue = Unavoidable fixed cost ÷ 2
= $70,000 ÷ 2
= $35,000
So, Net Loss = To continue (Loss) - To Discontinue
= $5,000 - $35,000
= $30,000
Therefore there is a decrease of $30,000
Answer:
A
Explanation:
Optimization using total value calculates the total value of each feasible option and then picks the option with the highest total value.
Optimization using marginal analysis calculates the change in total value when a person switches from one feasible option to another, and the uses these marginal comparisons to choose the option with the highest total value.
Both gives identical answers.
Optimization can be implemented using many different techniques.
One of it, is Total value total benefit - total cost (net benefit).
It translate all cost and benefits into common units, like dollar per month.
Calculate the total net benefit of each alternative.
Pick the alternative with the highest net benefit.
