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PtichkaEL
1 month ago
10

Madeline spends all of her spare money on widgets, which cost $2 each, and gizmos, which cost $3 each. What is her opportunity c

ost if Madeline buys 12 widgets?
Business
1 answer:
stepan [3.5K]1 month ago
6 0

Response:

In this scenario, the opportunity cost that Madeline faces amounts to 8 units of gizmos.

Clarification:

Opportunity cost refers to the potential benefit or profit that could have been realized if a different choice had been made. In this case, Madeline purchased 12 widgets costing $2 each, totaling $24 ( $2 x 12 ). Thus, her opportunity cost corresponds to the gizmos she missed out on, calculated as $24 / $3 = 8 units

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I sell pants that have $5 in variable costs (direct materials and labor). I have $100,000 in fixed costs, and I expect to sell 1
Free_Kalibri [3773]

Answer:

Markup(%) = 216.67%

Explanation:

Markup indicates the profit earned expressed as a percentage of the cost.

Markup = Profit / cost × 100

The cost consists of direct material costs, direct labor costs, and fixed costs.

Cost per unit = 5 + (100,000/10,000)

                     = 15 per unit.

The total cost for a pair is = 2 × 15 = 30.

<pthe profit="" for="" each="" pair="95">$65

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2 months ago
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If IBM manufactures a computer in the United States and sells it to a French business firm in Paris, it will cause an increase i
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When products from a country are sold abroad, it's classified as export. Conversely, if a country acquires goods from another nation, it is defined as import. The difference between exports and imports is termed net export. An increase in exports raises net exports, while a decrease in imports lowers them. Consequently, if IBM sells a computer to a French company, it boosts U.S. net exports while diminishing France's.
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Carlos is risk-neutral and has an ancient farmhouse with great character for sale in Slaterville Springs. His reservation price
Free_Kalibri [3773]

Answer:

The question lacks completeness; the following addition would enhance it:

"If Realtors require a 5 percent commission on the sale price and every Realtor faces opportunity costs of $2,000 to negotiate a sale, will Carlos opt to hire a Realtor? If he does, how will the overall economic surplus change?"

The result is that the total economic surplus rose from $20,000 to $248,000.

Explanation:

It is essential to grasp the concepts of marginal cost, marginal benefit, and asymmetric information. Marginal cost refers to the additional cost incurred from utilizing one more unit of a resource, while marginal benefit signifies the advantage gained from that investment. Asymmetric information arises when one side in a transaction possesses more information than the other.

Carlos's reservation price stands at $130,000. He intends to sell for $140,000 to Whitney, whose reservation price is $150,000. Thus, Carlos enjoys a surplus of 140,000 - 130,000 = $10,000, and Whitney has a surplus of 150,000 - 140,000 = $10,000. Consequently, the total economic surplus amounts to $20,000.

Should Carlos enlist a realtor, who charges 5% if the property is sold for $300,000 to someone with a reservation price of $350,000, the surplus would be calculated as:

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Hence, the buyer's surplus is:

350,000 - 300,000 = $50,000.

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