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Andre45 [30]
1 year ago
12

Andrew is deciding whether to remain in the home he has lived in for the past ten years, which is located very near his work, or

to move into a newer home that is located in the suburbs farther from his job. The old house was purchased for $160,000 and has a market value of $220,000. The new home can be purchased for $285,000. Which of the following is not relevant to Andrew's decision?
a. Driving distance to work
b. Cost of the old house
c. Market value of the old house
d. Cost of the new house
Business
1 answer:
vekshin11 year ago
4 0

Answer:

The decision that is not relevant to Andrew is:

b. Cost of the old house.

Explanation:

a) The cost of the old house ($160,000) is not relevant to Andrew decision challenges.  It is a sunk or past cost.  Past costs are not relevant because they do not make a difference in the decision or the alternative to choose.  Since Andrew will be impacted by the driving distance to work from his new house, the market value of the old house, and the cost of the new house, these are relevant in Andrew's decision.

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2 years ago
Geraldine was injured in a car accident, and the insurance company has offered her the choice of $25,000 per year for 15 years,
erma4kov [3.2K]

Answer:

Explanation:

Present value of annuity due = (1+interest rate)*Annuity[1-(1+interest rate)^ -time period]/rate

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7 0
1 year ago
2. Which of the following headlines is more closely related to what microeconomists study than to what macroeconomists study?
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4 0
2 years ago
If three workers are assigned to a task lasting four days, two workers are assigned a task lasting three days, and one worker is
yarga [219]

Three workers per day is minimum resource limit.

<u>Explanation:</u>

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All asset make and change demands are assessed against each LimitRange object in the task. In the event that the asset abuses any of the listed requirements, at that point the asset is dismissed. In the event that the asset doesn't set an express worth, and on the off chance that the imperative backings a default esteem, at that point the default esteem is applied to as far as possible is an edge for an asset the executives and helps control asset use. A procedure for overseeing limits takes into consideration the reallocation of assets to various clients or activities as necessities change.

4 0
2 years ago
Suppose the price of Twinkies is reduced from $1.45 to $1.25 and, as a result, the quantity of Twinkies demanded increases from
Nookie1986 [14]

Answer:

The price elasticity of demand for Twinkies in the given price range is 0.641.

Explanation:

The price of Twinkies is reduced from $1.45 to $1.25.

The quantity of Twinkies demanded increases from 2,000 to 2,200.

Price elasticity of demand for Twinkies

= \frac{\frac{Q2 - Q1}{\frac{Q2 + Q1}{2} } }{\frac{P2 - P1}{\frac{P2 + P1}{2} } }

= \frac{\frac{2,200 - 2,000}{\frac{2,200 + 2,000}{2} } }{\frac{\$ 1.25 - \$ 1.45}{\frac{\$ 1.25 + \$ 1.45}{2} } }

= \frac{\frac{200}{\frac{4,200}{2} } }{\frac{\$ 0.20}{\frac{\$ 2.70}{2} } }

= \frac{\frac{200}{2100} }{\frac{\$ 0.20 }{\$ 1.35} }

= \frac{0.095}{0.148}

= 0.641

6 0
1 year ago
Read 2 more answers
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