Reference no: EM133063730
You own a restaurant which buys its meat from a distributor but grows its own vegetables, for use in food preparation. There is an opportunity cost even when you buy the meat, because when you pay the cash, you forego other alternative uses for the money. But in the case of the vegetables, there is another opportunity cost involved. Which of the following statements best describes the two types of costs involved in this example?
Group of answer choices
Buying the meat is a fixed cost, whereas the vegetables are a variable cost.
Buying the meat, a direct expenditure, is an explicit cost. On the other hand, using the vegetables has an implicit cost, because you have to consider that since you grow them, you have to factor in that you could have sold those vegetables somewhere else.
Buying the meat is an implicit cost, whereas the vegetables are an explicit cost.
Buying the meat is averaged out as an average total cost (ATC), whereas the vegetables can only be considered as average variable cost (AVC).
|
General condition in lake county ohio economy
: What is the general condition in Lake County Ohio economy: contracting (recession), or expansion, peak or trough.
|
|
What is interest in the first month
: Purchase price is $25,000, with 20% down and the balance financed at 6.2% over five years. What is interest in the first month
|
|
Confidence interval for proportion
: There has been rapid growth in the land area planted with high yielding, high protein soybeans particularly suited to local climate, many of which are not genet
|
|
Great accomplishment that is so inspiring
: Discuss someone in your life that Linda resembles. What was their great accomplishment that is so inspiring?
|
|
Types of costs involved in example
: You own a restaurant which buys its meat from a distributor but grows its own vegetables, for use in food preparation. There is an opportunity cost even when yo
|
|
How much commission will you pay
: Question - You are buying 60 shares of the Ivanhoe Fund at $50 per share. The sales charge is 5 percent. How much commission will you pay
|
|
Prepare the entry to record the issuance of the note
: On May 2, Kingbird Company lends $9,900 to Chang, Inc., issuing a 6-month, 12% note. Prepare the entry to record the issuance of the note
|
|
Transportation and logistics field
: You will identify and discuss 2-3 emerging concepts within the transportation and logistics field.
|
|
What was your return on investment for the first year
: You purchased a rental property for $171,500 at the beginning of last year. What was your return on investment for the first year
|