Opportunity cost practice problems
[DOC File]Transfer Price (in-class problem)
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Min. transfer price = incremental (outlay) costs/unit to point of transfer + opportunity cost/unit to the supply division. The SF Manufacturing Co. has two divisions in Iowa, the Supply Division and the BUY Division. Currently, the BUY Division buys a part (3,000 units) from Supply for $12.00 per unit.
[DOC File]Opportunity cost activity - Foundation For Teaching Economics
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Practice with Opportunity Cost Analysis. Materials. 4 different types of candy, gum, or crackers, cookies, snacks etc. (1 per student) Handout: Practice with opportunity cost analysis (1 per student) Overhead transparencies or power points slides: Visual 1: Characteristics of Cost. Visual 2: Discussion Questions: Choosing a Snack
[DOC File]Problems and Solutions - Oregon State University
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Problems and Solutions Chapter 9 Payback Period – Given the cash flows of the four projects, A, B, C, and D, and using the Payback Period decision model, which projects do you accept and which projects do you reject with a three year cut-off period for recapturing the initial cash outflow?
[DOCX File]www.brookscollegeprep.org
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The economy with the lower opportunity cost still has the comparative advantage in producing that good. Nothing else changes except: Method or rule for input problems: IOU. For input problems, the other goes under when calculating opportunity cost. Practice input problem: The following chart illustrates the number of hours it takes to
[DOC File]Practice Problems: Chapter 12, Inventory Management
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Practice Problems: Chapter 12, Inventory Management. Problem 1: ABC Analysis Stock Number Annual $ Volume Percent of Annual $ Volume J24 12,500 46.2 R26 9,000 33.3 L02 3,200 11.8 M12 1,550 5.8 P33 620 2.3 T72 65 0.2 S67 53 0.2 Q47 32 0.1 V20 30 0.1 = 100.0
[DOC File]Opportunity Cost Work Sheet
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Opportunity cost . is one of the most important concepts in economics and is the basis of all economic decision making. The definition of opportunity cost is the value of any alternative you must give up when you make a choice. More specifically, it is the value of the next best alternative.
[DOC File]Product Possibilities Curve Worksheet
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What is the opportunity cost of moving from point A to point B? What is the opportunity cost of moving from point B to point C? What is the opportunity cost of moving from point D to point E? Here is the production possibilities table for war goods and civilian goods: _____ Production Alternative_____
[DOC File]Practice Problems: - Weebly
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b. increases making the opportunity cost of holding money fall. c. decreases making the opportunity cost of holding money rise. d. decreases making the opportunity cost of holding money fall. A decrease in the interest rate, other things being equal, causes . ... Practice Problems: ...
[DOC File]Practice with Production Possibilities Frontiers and ...
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Practice with Production Possibilities Frontiers and Opportunity Cost. 1. Suppose that the nation of Nestle produces chocolates and cookies. Below are the possible combinations of chocolate and cookies that Nestle can produce. Combination Chocolates Cookies. A 0 10. B 2 9. C 4 7. D 6 4. E 8 0. a. Plot the Production Possibilities Frontier for ...
[DOC File]Practice Questions: Tradeoffs, Opportunity Cost, Supply ...
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Practice Questions: Tradeoffs, Opportunity Cost, Supply and Demand 1. A headline in the New York Times read “Study Finds Enrollment Is Up At Colleges Despite Recession.”
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