Answer:
The opportunity cost = $2.5
Explanation:
Given:
You own a building that has four possible uses: a cafe, a craft store, a hardware store, and a bookstore. The value of the building in each use is $2,000; $3,000; $4,000; and $5,000, respectively.You decide to open a hardware store.
<u>Question asked:</u>
The <u>opportunity cost of using this </u><u>building for a hardware store</u> ?
<u>Solution:</u>
As we know:
What you sacrifice = Value of a cafe + Value of a craft store + Value of a bookstore
= $2000 + $3000 + $5000 = $10,000
What you gain = Value of a hardware store
= $4000
Thus, the opportunity cost of using this building for a hardware store is $2.5
Answer:
The consumer surplus will definitely increase.
Explanation:
The reason is that the manufacturers have purchased the sugar at a high price and now it is available at a lower price. So this means that the price of chocolate must decrease in the market if the price of material input is fallen. But the chocolate prices will take time to fall and as the result the customer is willing to pay lower prices but he is forced to pay more because the manufactured chocolates include sugar which was bought at a higher price. So the consumer surplus will increase.
Answer:
Answer 1: C. Boeing wants to produce the Dreamliner at the least possible cost. To do so Boeing buys from the firms that have the lowest costs for delivering the components.
Answer 2: B. Boeing would be able to make more business decisions about the Dreamliner
Explanation:
Answer 1: It is cost effective for Boeing to manufacture all the components of the Dreamliner buy purchasing from the components from other firms instead of manufacturing them in its factory in the United States.
Answer 2: If Boeing manufactured all the Dreamliner's components in its own factories, they would have the upper hand in making more of the business decisions of that concerns the Dreamliner.
Answer:
Jan. 2
Investment in Associate $526,000 (debit)
Cash $526,000 (credit)
Sept. 1
Cash $138,000 (debit)
Dividend Received $138,000 (credit)
June 1
Cash $349,600 (debit)
Dividend Received $349,600 (credit)
Dec. 31
Cash $96,500 (debit)
Investment in Associate $96,500 (credit)
Explanation:
When Kodax Company purchased 92,000 shares of Grecco Co she had significant influence (more than 20% of shareholding in Grecco Co). We call this an <em>Investment in an Associate</em>.
The Investment in Associate is a <em>Financial Asset </em>to the Holder (Kodax Company) and an <em>Equity Element</em> to the Investee (Grecco Co) and should be recorded appropriately as above.
