demand. False 6. Cost–benefit analysis (CBA) is a set of techniques for assisting in the making of decisions that translates all relevant concerns into market (dollar) terms. True 7. The appropriate measure of economic cost is opportunity cost. True 8. How much has to be paid for treatment, and how much the treatment is worth, depends on whose perspective a cost–benefit analysis of health care is taking. True 9. The chance that you might become injured or sick is a cost, as is the chance
Words: 623 - Pages: 3
further (AngloInfoCanada.Com). If the speed limit were raised, the marginal benefits would be: 1. Reduced travel times 2. Congestion relief 3. Higher productivity of transportation of goods The marginal costs associated with a speed limit increase would be: 1. The cost of more patrol vehicles and police presence 2. Lost revenue from assigned speeding tickets 3. The cost of increased fuel consumption When looking at the marginal benefits, there can be assumptions made on increased productivity
Words: 781 - Pages: 4
outlay where the wrong decision could have long-term financial consequences. In addition, two principles that play a major role in this decision include principle number two the cost of something is what you give up to get it, and principle number three rational people think at the margin. The role of principal number two the cost of something is what you give up to get it, puts in perspective what a person must give up to purchase a home. For example, most people have to give up frivolous spending to
Words: 274 - Pages: 2
Manufacturing 1) Cost plus pricing is used by many companies for various reasons. Companies first “calculate average total cost and then mark up the price to yield a target rate of return.” (Brickly, Smith, Zimmerman, p. 211). Companies use this approach to protect themselves from increase in production costs by adding their desired rate of return. This approach is also used by many companies because of its simplicity. With supply contracts, it guarantees reimbursement of cost and producing profit
Words: 382 - Pages: 2
by him which is a very real decreasing marginal benefit. In addition, setting the purchase price based on profit certainly incentivizes him to keep the total profit down during that time. See below: So in this scenario he would earn $75k less over the 5 years, but would be able to buy the company for ½ the price. I have not factored in the flat salary as it isn’t really relevant except to add to the discrepancy even more. 2) Production Opportunity Cost A can manufacturing company produces and
Words: 1268 - Pages: 6
——————————————————————————————— 1. A survey of 850 family houses showed that 220 own Laptops, 450 own PCs, and 130 own both Laptops and PCs. a. How many houses in the survey own either a Laptop or a PC? (a) 280 (b) 540 (c) 800 (d) 720 (e) None of the above b. How many own a Laptop and do not own a PC? (a) 220 (b) 320 (c) 90 (d) 350 (e) None of the above c. How many do not own any of the items: Laptops or PCs? (a) 50 (b) 80 (c) 310 (d) 350 (e) None of the above —————————————————————————————— 2. If
Words: 1923 - Pages: 8
Question 1: Discuss the “Coffee Bun” market in Malaysia Coffee Bun business was brought to famous by a home-grown bakery known as Rotiboy, who is also the inventor of the bun industry in Malaysia. Majority bakeries in Malaysia usually produces and sells flour-based food baked in oven such as cakes, pastries, bread and pies however RotiBoy solely produced and sold this coffee flavoured Mexican Bun. This Coffee Bun sales started in a small town north of Malaysia known as Bukit Mertajam in the Year
Words: 3117 - Pages: 13
Question 1 Le problème, dans le cas où pour régler une mauvaise situation financière un gouvernement emprunterait de l’argent à des pays étrangers avec un remboursement sur cent ans avec une période de grâce de 25 ans, est un problème entre générations. Si le gouvernement emprunte de l’argent et ne commence à rembourser cette dette que 25 ans après, il y a de fortes chances que ce ne soit pas le même gouvernement qui soit en place. Cette solution peut cependant être la seule façon de sortir un pays
Words: 2118 - Pages: 9
existing goods and services for Will Bury’s new product. In this paper the subject to discuss is profit-maximizing and increasing revenue. Marginal cost, marginal revenue, credit markets, and the unemployment rate are briefly covered. Additional sections will discuss pricing and non-pricing strategy, barriers to entry, product differentiation, and minimizing cost. Business Proposal Profit-Maximizing and Increasing Revenue Profit-maximizing quantity is figured by determining if the
Words: 1434 - Pages: 6
Introduction: This report aims to describe and evaluate the financial statements in food and beverage operations, the process of cost and pricing and its specifications and to analyse the steps in purchasing process. 2.1. Demonstrate the use of financial statements in food and beverage operations Various food and beverage establishments publish their financial reports and statements like balance sheets or cash flow in the end of each tax year, simply for the aim of evaluating their progress
Words: 1387 - Pages: 6
