Opportunity costs and externalities

Assignment Help Business Economics
Reference no: EM132408671

Explain why Sunk costs should not be included in a capital budgeting analysis, but opportunity costs and externalities (the effects on other areas of the firm), should be included.

Reference no: EM132408671

Questions Cloud

Alternative growth options available to the business : Describe the alternative growth options available to the business known as "Lululemon " in the global environment.
Explain why if two mutually exclusive projects : Explain why if two mutually exclusive projects are being compared, the short-term project might have the higher ranking under the NPV criterion
Sketching an as/ad model for case : Sketching an AS/AD model for each case, determine which of the following phenomena could be the cause. (There may be more than one.)
What is her cost of going to the atm : If Sally nominal interest rate is 5 percent and she has 15 percent probability of having cash lost and she spends 10 dollars each day and has the total cost
Opportunity costs and externalities : Explain why Sunk costs should not be included in a capital budgeting analysis, but opportunity costs and externalities (the effects on other areas of the firm),
Why is operating cash flows : Why is Operating Cash Flows, rather than accounting profits (Net Income), the better basis for emphasis on cash flows?
Find market demand for good x : This question will study the market for good x. Suppose there is one consumer that is a price taker in all markets with the following preferences:
Describe hypothesis testing for population proportions : Describe hypothesis testing for population proportions with regards to the p-value and What does the confidence interval tells us about a sample's mean
Absence of warranties or regulation in market : In the absence of warranties or regulation in this market, what would be the total profit for sellers from selling good used cars?

Reviews

Write a Review

Business Economics Questions & Answers

  Suppose the economy is in an inflationary gap

Suppose the economy is in an inflationary gap. Which of the following public policies would not help the economy get back to potential real GDP?

  Annual interest in its economic analysis

If the firm uses 10% annual interest in its economic analysis, where should the manufacturing plant be located?

  Welfare effects of tariff in a small country

Welfare effects of a tariff in a small country Suppose Guatemala is open to free trade in the world market for soybeans. Because of Guatemala's small size, the demand for and supply of soybeans in Guatemala do not affect the world price.

  Demand curves in two separate markets maximizes profit

A monopolist facing different demand curves in two separate markets maximizes profit by: A monopolist that is able to perfectly price discriminate will end up producing a level of output:

  Common forms of media used by microbiologists

What are the three common forms of media used by microbiologists and what are their uses?

  Differentiation between strong and weak performers

A company decides to offer an average annual raise of 8%, although the current inflation rate is 10%. Each engineering manager decides on the best way to distribute the salary increase to his/her staff. However, if everyone gets an increase of 8%, th..

  How can you create equally-sized home made dividends

You would prefer to have equal cash flows from the stock over the next two years. How can you create equally-sized home made dividends? Ignore taxes.

  The intended aim of the price ceiling set

If the intended aim of the price ceiling set in the graph shown was a net increase in the well being of consumers, then positive analysis would conclude:

  Illustrate firm short-run curve and its long-run supply

Illustrate what is the difference between the firm's short-run supply curve and its long-run supply curve? Make up an actual example to explain your answer.

  Small domestic market called

What are small firms in a small domestic market called?

  What rate must it earn interest at

If it can earn 9.5% interest, how long would any given sum of money take to treble its value?

  Develop enforceable methods for dispute resolution

To determine the requirements for performance and breach of online contracts; and to develop enforceable methods for dispute resolution.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd