Answered: 10) The value of the best altemative…

10) The value of the best altemative sacrificed to obtain something you want is referred to as A) explicit cost. B) opportunity cost Cmarginal cost. D) sunk cost.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 3.2IP: Concert Opportunity Cost 2 You were able to purchase two tickets to an upcoming concert for $100...

See similar textbooks

Related questions

Q: Operationalize the su

A: The shopping dissatisfaction can be operationalized by using multiple scales.I would use the scale…

Q: If the input is fixed, the goal is to (minimize or maximize) the present worth of benefits.

A: Every firms decides to get a positive return on the expenses incurred by it on the production of…

Q: (b) Match the statement in Column I with the most appropriate statement in Column I: [1 Column I…

A: Cost refers to the sum of money a corporation spends on making or producing products or services.…

Q: The cost of any activity measured in terms of the vaule of the next best alternative forgone is…

A: When someone chooses any activity and leaves other, the value in terms of cost of the best option…

Q: efficiency refers to 'getting the most for the least'. Multiple Cholce Economic Productive Technical

A: If all commodities and factors of production in a society are dispersed to their most desirable…

Q: Someday, if you want to be an economist or to study more about economic analysis, what platform you…

A: While studying economics, economists have the capability to reduce costs while using different…

Q: The decision-making process where costs and benefits are usually measured in dollars is called a(n)…

A: The decision making process is an important determinant for a firm or a business. It helps in…

Q: A nonrefundable cash outlay (e.g., money spent on a passport) is an example of an opportunity cost.…

A: At the marketplace, a firm has to bear different types of cost such as overhead cost, opportunity…

Q: Time left C A bagel shop sells fresh-baked bagels from 5 a.m. until 7 p.m. every day. The shop does…

A: Here, in the given situation, a bagel shop does not sell any bagel after 7 p.m. and throw the…

Q: Which of the following types of cost are always relevant to a decision? 10 Multiple Cholce Ask Sunk…

A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…

Q: The assignment method involves adding and subtracting appropriate numbers in the table to find the…

A: There are different ways to operate a business in the market and the success of the firm depends…

Q: Past costs not relevant to decisions because they cannot be changed no matter what actions are…

A: In a market, a firm faces different types of costs when making an investment and production…

Q: Kaoru Ishikawa is credited with using quality tools to understand root causes of problems. Pareto…

A: Kaoru Ishikawa, a Japanese organizational theorist. At the Faculty of Engineering at The University…

Q: Rail Tours, Inc., sells packaged tours on rail lines, including gourmet meals and a reserved bed.…

A: Demand refers the total amount of goods and services that are willing and able to buy at the…

Q: Q)What type of cost is the tuition paid for college credit after the census date when a refund is no…

A: In economics, cost is classified into different categories according to its influence on an…

Q: Explain what a sunk cost is, what an opportunity cost is, and how each cost should be handled when…

A: Sunk cost refers to the cost or the expense that is already made and can be no longer recovered.…

Q: Organizers of an Internet training session will charge participants $200 to attend. It costs $3000…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: ABC Company issued a payment for the suppliers of raw materials they used in producing their goods.…

A: Fixed cost is the costs that needs to paid every month or year whether the production process is…

Q: The law of diminishing returns or variable proportion is only applicable in the

A: Law of Diminishing returns or variable proportion states that in the short run, when more of…

Q: A decision maker wishes to minimize the cost of producing a given level of total benefit B = 288.…

A: Given: The cost for minimizing the total benefit is: B = 288 The cost function is C = 6x + 3y The…

Q: Ifmarginal cost is below average total cost, average total cost will

A: During the production of the communities the overall cost incurred is referred to be as a total cost…

Q: I. Theoretical Analysis 1. Each individual student or team (two students max) must find an article…

A: Nominal value in economics is measured in terms of money, whereas real value is assessed in…

Q: The opportunity cost of any decision is the forgone value of the next best alternative that is not…

A: Opportunity costs represent the potential benefits a personal, investor, or business misses out on…

Q: Amjad takes twenty minutes to travel from his home to his work using his car; however, he chose to…

A: The money spent to purchase the factor of production to produce goods and services is termed as cost…

Q: Leonard Presby, Inc., has an annual demand rate of 1,000units but can produce at an average…

A: It is given that the annual demand rate is 1,000 units and average production rate is 2,000 units.…

Q: In health care, which of the following factors determine the position of a cost curve? (select all…

A: Health care is being delivered by the health professionals and also the allied health fields.

Q: Is this example also an example of economically rational decision making? “In 2019, I started my…

A: Opportunity cost refers to the cost that is next best alternative foregone to select the best…

Q: Price and cost (dollars per unit) Curve I Curve 2 Quantity (units per day) Which of the following…

A: Competitive markets behave inefficiently from a society point of view due to the externality and…

Q: A marginal cost fiction C'(q) is given in the figure below. If the fixed costs are $10,000,…

A: Marginal cost is defined as the cost of producing an additional unit of the output. Marginal cost is…

Q: How is the benefit-cost analysis an important feature of the economic analysis method?

A: Economic analysis refers to a systematic approach in which optimal scarce resources are determined…

Q: The ratio of total cost to number of units produced defines: a. Incremental cost b. Average cost c.…

A: Costs are defined as the expenses incurred by the producer to purchase goods and services. Wages,…

Q: Why Can't We Be Friends? operates a conflict settlement service for distressed couples. If it has no…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Which one of the answers is NOT a pitfall of following an overall cost leadership strategy? TI

A: In the business procedure, cost leadership is laying out an upper hand by having the least cost of…

Q: A snowboard company hires 10 skilled employees who are paid a weekly wage of $1000. The cost of…

A: When the price is greater than marginal cost, it means that the producer would earn profits by…

Q: The marginal cost to make 180 loaves of bread is $3.15, and the average cost to make 180 loaves of…

A: There is a relationship between MC and AC - When MC<AC, AC falls When MC=AC, AC is at its…

Q: A person who keeps projects on-time and within-budget is called the _____________.

A: A project refers to a series of tasks, or steps which have to completed in order to reach an…

Q: In a conventional B/C ratio: (a) Disbenefits and M&O costs are subtracted from benefits (b)…

A: Conventional B/C ratio can be calculated by using the following formula:

Q: Deviations from standard costs can be caused by I. Variations in the per unit cost of labor and/or…

A: The standard cost is estimated in the beginning of the production or an estimated cost of producing…

Q: Profit Research Lab Hiking Lodge Total Action (Dollars) (Dollars) (Dollars) No Recycling 3,000 2,000…

A: Property rights are the rights or laws which define the privileges and limitations of using a…

Q: "Time fixed effects control for unobserved variables that are the same acrossentities but vary over…

A: The time fixed effects and entity model eliminates bias obtained from independent variables that…

Question

10) The value of the best altemative sacrificed to obtain something you want is referred to as
A) explicit cost.
B) opportunity cost.
C) marginal cost.
D) sunk cost.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Concert Opportunity Cost 2 You were able to purchase two tickets to an upcoming concert for $100 apiece when the concert was first announced three months ago. Recently, you saw that StubHub was listing similar seats for $225 apiece. What does it cost you to attend the concert?
___________ is the amount or subjective value that is forgone in choosing one activity over the next best alternative.A. Historical costB. Sunk costC. Opportunity costD. Explicit Cost
Opportunity cost refers to A) explicit costs+ implicit costs B) Time costs C) Money costs D) None of the above
Costs that do not vary with output are Question 8 options: a) fixed costs b) variable costs c) marginal costs d) explicit costs
Q)What type of cost is the tuition paid for college credit after the census date when a refund is no longer possible? Marginal Cost Opportunity Cost Sunk Cost Total Cost
If marginal cost is below average total cost, then average total cost Question 10 options: a) is constant b) is falling c) is rising d) may rise or fall depending on the size of the fixed cost
True or False The average total cost cannot equal marginal cost.
If marginal cost is greater than average total cost, then average total cost must be increasing. Group of answer choices True False
A snowboard company hires 10 skilled employees who are paid a weekly wage of $1000. The cost of capital is $3000 and it is fixed, which means that it does not vary with output. The company is currently producing 240 snowboards. The company's cost will be $13500 if it produces an additional snowboard. A customer is willing to pay $550 for the 241st snowboard. a) Should the company produce and sell it. YES/ NO b) Explain c) What core principles are considered in the snowboard company's decisionmaking? i) Scarcity, Chioce and Opportunity Cost ii) Cost benifit analysis iii) Incentive principle iv) Diminishing returns Select one: 1. All principles are considered 2. (i) only 3. (i) and (ii) only 4. (i), (ii) and (iii) only 5. (ii) and (iii) only 6. (i) and (iv) only 7. (ii) and (iv) only 8. (iii) and (iv) only 9. (ii), (iii) and (iv)
Which of the following statements regarding marginal analysis is true? A. If total cost is falling, marginal cost must be positive. B. If total cost is rising, marginal cost must be rising. C. If total cost is rising, marginal cost could be falling. D. If total cost is falling, marginal cost could be zero.
Employees at the Jackson Hole Corporation typically take forty-five minutes for lunch when the allocated time is only thirty minutes. Employees are encouraged to eat at the company cafeteria located in the middle of the company facilities. Most employees choose to eat their lunch in the cafeteria. Is there an agency cost here? If so, how can management eliminate or reduce this agency cost? How might management eliminate this agency cost? (Select all that apply.) A. If the facilities are sufficient to handle a thirty minute lunch the solution may be as simple as reaffirming the lunch break time with the employees. B. It may be more costly to enforce the thirty minute lunch time than to accept the standard forty-five minute break currently used by employees. Not all agency costs can be eliminated or reduced. The norms of the employees and the ability of current facilities to support a policy need to be considered when setting policies, in this case the length of the lunch…
A graph represented by a straight line parallel to the output of the X-AXIS is an image of which classification of cost? a. Production cost b. Total fixed cost c. Marginal cost d. None of these