Opportunity cost questions and answers
[DOC File]Acctg 311A – Old Sample Final Exam – Answers and Solutions
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Opportunity cost is regular contribution margin of $37 ($70 – 10 – 15 – 8) x 5,000 units that would be forfeited to allow the manufacture of 15,000 special order units. ($37 x 5,000) -:- …
[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.
[DOCX File]Chapter 2
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ANSWERS TO END-OF-CHAPTER AND APPENDIX QUESTIONS. 1-1What is an opportunity cost? How does the idea relate to the definition of economics? Which of the following decisions would entail the greatest opportunity cost: Allocating a square block in the heart of New York City for a surface parking lot or allocating a square block at the edge of a ...
[DOC File]Chapter 1-Scarcity, Choice, and Opportunity Cost
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-Decrease the opportunity cost of doing something ---> Do more of it. Section 3—Production Possibilities Curve. Production Possibilities Curve-A graph showing alternative ways to use an economy’s productive resources. Guns Butter 0 15 8 14 14 12 18 9 20 5 21 0
[DOC File]End of Chapter 18 Questions and Answers
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2. What is the present value of an offer of $14,000 one year from now if the opportunity cost of capital (discount rate) is 11% per year simple interest? Answer: 14000/1.11=$12,613.3. 3. What is the present value of an offer of $15,000 two years from now if the opportunity cost of capital (discount rate) is 12% per year compounded annually?
[DOC File]Answers to Concepts Review and Critical Thinking Questions
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Answers to Concepts Review and Critical Thinking Questions. 1. In this context, an opportunity cost refers to the value of an asset or other input that will be used in a project. The relevant cost is what the asset or input is actually worth today, not, for example, what it cost to acquire. 2.
[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.”
[DOC File]Opportunity cost activity
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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
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