The risk that managers will take actions that are in their best interests, but knowingly not in the best interests of the firm, results in
A) negative externalities.
B) economies of scale.
C) agency costs.
D) price risks.
E) market entry costs.

Answers

Answer 1

The risk that managers will take actions that are in their best interests, but knowingly not in the best interests of the firm, results in agency costs. Option C is the correct answer.

A form of internal business cost known as an agency cost results from an agent's representation of a principal in their acts. When there are fundamental inefficiencies, problems, or disruptions, including clashes of interest between shareholders and management, agency costs usually follow. The acting agent is responsible for receiving payment of the agency's fee. Option C is the correct answer.

The costs incurred by the agency in analyzing and resolving disputes include any expenditures related to handling the demands of disputing parties. The term "agency risk" also applies to this expense. Agency expenditures are essential outlays for any organization where the principals do not relinquish full autonomy.

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Related Questions

highlight four reasons why a seller would prepare a proforma invoice???​

Answers

Answer:

Pro forma invoices are sent to buyers ahead of a shipment or delivery of goods or services. Most pro forma invoices provide the buyer with a precise sale price. A pro forma invoice requires only enough information to allow customs to determine the duties needed from a general examination of the included goods.

Explanation:

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In​ 2013, the Oakland​ A's were one of the hottest teams in baseball. They were regularly drawing​ "sellout" crowds, with many more fans wanting tickets. ​ However, the​ A's did not sell all of the​ 56,000 seats. The​ A's removed or put tarps over roughly​ 20,000 seats in most of the third deck and the outfield stands. The​ A's management said that the reason was to create a more intimate feeling for the fans. ​ What's another​ explanation? The​ A's removed or put tarps over roughly​ 20,000 seats to

Answers

Answer:

The other reason was to limit the number of special seats to charge a higher price for them.

Explanation:

Oakland A's knows that it has a large number of dedicated fans and that they are thirsty for tickets to watch the games, as these tickets are in high demand. In this case, when Oakland A's puts tarps or removes only on 20,000 seats and claims that it is to promote a more intimate experience for fans, it is because it knows that fans will want to occupy these special places, no matter what price they need to pay. In this case, we can say that a probable reason for the existence of these 20,000 unavailable seats is to increase the profit from ticket sales, by charging a higher price for the available seats.

an example of a non-pecuniary job characteristic is

Answers

Answer:

A comfortable work environment.

Explanation:

The principle of decreasing marginal benefit is that as_______.

Answers

The principle of decreasing marginal benefit is that as the quantity of a good consumed,increases, its marginal benefit decreases. Pizza slices.

The marginal utility principle is what, exactly?

The marginal utility rule states that by selecting the amount at which marginal utility equals marginal cost, we can maximize economic net economic benefit of any action.The activity's net benefit is maximum at this amount.

What is the foundation of total marginal cost?

The marginal cost is the cost to produce a subsequent unit of output.Marginal cost is a key topic in costing system since it helps in identifying the quantity of production that is most effective for just a manufacturing process.

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whats the meaning of oligopoly and monopoly market structure​

Answers

Oligopoly is a market structure with a small number of firms, none of which can keep the others from having significant influence. A monopoly is one firm, a duopoly is two firms and an oligopoly is two or more firms.

Answer:

Oligopoly is a market structure with a small number of firms, none of which can keep the others from having significant influence, whereas monopoly is one firm, a duopoly is two firms and an oligopoly is two or more firms.

Explanation:

got it from class with help from investopida

A(n) _____ is a set of firms that make and deliver a given set of goods and services to the ultimate consumer.

Answers

A supply chain is a set of firms that make and deliver a given set of goods and services to the ultimate consumer.

What is a supply chain?

A Supply chain is the entire system of production.  It starts from sourcing for raw materials to delivering a product or service to an individual also known as a customer.

Therefore, a supply chain is a set of firms that make and deliver a given set of goods and services to the ultimate consumer.

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Why is it hard to predict positive Moments of Reality (MORs)? A. Because they are negatively influenced by lifetime customer value. B. Because they differ by customer, and by time of year. C. Because most companies use moments of truth, which are in conflict with Moments of Reality. D.Because it is difficult to tell if a Moment of Reality is negative or positive.

Answers

Answer:

B. Because they differ by customer, and by time of year.

Explanation:

Moments of reality are hard to predict as it varies from customer to customer. All customers have different values and they rate a product or service according to their own values. Moments of reality can be positive or negative and they are influenced by customer experience.

What dynamics were used ​

Answers

Answer:

J.S. Bach used some dynamic terms, including forte, piano, più piano, and pianissimo (although written out as full words), and in some cases it may be that ppp was considered to mean pianissimo in this period.

If a new car is valued at $21,300 and 7 years later it is valued at $8000, then what is the average rate of change of its value during those 7 years?

Answers

The average rate of change of the car's value over the 7-year period can be calculated by finding the difference in value and dividing it by the time elapsed. In this case, the initial value of the car is $21,300 and its value after 7 years is $8,000.

To calculate the average rate of change, we subtract the initial value from the final value: $8,000 - $21,300 = -$13,300. The negative sign indicates a decrease in value.

Next, we divide the difference in value by the time elapsed, which is 7 years: -$13,300 / 7 = -$1,900 per year.

Therefore, the average rate of change of the car's value over the 7-year period is -$1,900 per year, indicating a depreciation in value of $1,900 per year on average.

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Las 7) Find the production level that will maximize the profit if the cost and price functions are Ca) = 10000 + 500x - 1.6x? +0.001x and ple) = 1700 - 7. many recommends that the company manufacture

Answers

To find the production level that maximizes profit, we need to determine the quantity that maximizes the difference between the revenue and cost functions. The cost function is Ca(x) = 10000 + 500x - \(1.6x^2\)+ 0.001x, and the price function is ple(x) = 1700 - 7x.

To maximize profit, we need to find the quantity x at which the difference between the revenue and cost functions is maximized. The revenue function is given by R(x) = ple(x) * x, where ple(x) represents the price function and x represents the quantity produced. In this case, the price function is ple(x) = 1700 - 7x.

The cost function is given by Ca(x) = 10000 + 500x - \(1.6x^2\) + 0.001x, which represents the total cost of production as a function of quantity x. To find the quantity that maximizes profit, we need to find the critical point of the profit function, P(x) = R(x) - Ca(x).

To find the critical point, we take the derivative of P(x) with respect to x, set it equal to zero, and solve for x. This will give us the production level that maximizes profit.

Once the critical point is found, we can evaluate whether it corresponds to a maximum or minimum by examining the second derivative of P(x). If the second derivative is negative, it indicates a maximum profit.

Therefore, by finding the critical point and analyzing the second derivative, we can determine the production level that will maximize profit for the company.

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The additional income from
selling one more unit of a good
O increasing marginal returns
O diminishing marginal returns
O marginal revenue
O marginal product of labor
O marginal cost

Answers

C, marginal revenue

Explanation: Marginal revenue is the additional income from selling one more unit of a good. It is usually equal to the price.

Happy to help, have a great day! :)

Punitive damages are Select one: a. commonly awarded for breach of contract. b. must be foreseeable to be recovered. C. must be proved with reasonable certainty. d. are awarded where no economic loss resulted from the breach. e. None of the above. Next page

Answers

The correct option is c. must be proved with reasonable certainty.

Punitive damages are awarded as a means to punish a party for particularly bad conduct that falls beyond what is legally acceptable and not to compensate for the damages suffered by the plaintiff. This response will answer the question "Punitive damages are" with the option that best describes the features of punitive damages.

Punitive damages are a. commonly awarded for breach of contract. b. must be foreseeable to be recovered. c. must be proved with reasonable certainty. d. awarded where no economic loss resulted from the breach. e. None of the above.

The option that best describes the features of punitive damages is c. must be proved with reasonable certainty. Punitive damages are not frequently awarded; rather, they are only awarded in situations of reckless or intentional acts. In addition, these damages serve to punish the offending party for their particularly bad conduct, beyond what is legally acceptable, and to deter them from doing it again in the future.

Punitive damages are additional damages that are awarded to the plaintiff in addition to any other compensatory damages that they may have received. They are only awarded in exceptional cases, where the defendant's conduct has been significantly harmful or malicious, and they serve as a punishment for the defendant, rather than as a compensation for the plaintiff.

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what is business and what is occupation​

Answers

Answer:

Business:

A person's regular occupation, profession, or trade.

Occupation:

A job or profession.

Explanation:

I looked them up in a dictionary.

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If we pay our employees for knowledge, skills, and abilities they may never use in the workplace, our overall compensation cost ______. Group of answer choices does not change changes insignificantly goes up goes down none of these

Answers

The "goes up", When we pay employees for knowledge, skills, and abilities that they may never use in the workplace, we are essentially providing them with additional training and education.

This means that their overall compensation cost will increase as they are being paid for skills that are not directly contributing to their current job responsibilities.

When a company pays for skills and abilities that are not used in the workplace, it is essentially spending money without gaining any benefits or productivity improvements. This results in an increase in overall compensation costs without any added value to the company.

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A company is currently bidding on 3 jobs. The probability of winning any one of the jobs is 0.5. Winning of a job is independent of winning the other 2. (a) Compute the probability that the company will win all 3 jobs. (b) Compute the probability that the company will win any 2 jobs.

Answers

(a) The probability that the company will win all 3 jobs is  12.5%.

(b) the probability that the company will win any 2 jobs is 37.5%.

(a) To compute the probability that the company will win all 3 jobs, we can use the multiplication rule of probability. The probability of winning each job is 0.5, so the probability of winning all 3 jobs is:

0.5 x 0.5 x 0.5 = 0.125 or 12.5%

Therefore, the probability that the company will win all 3 jobs is 0.125 or 12.5%.

(b) To compute the probability that the company will win any 2 jobs, we need to consider the different ways in which this can happen. There are 3 ways in which the company can win any 2 jobs: they can win the first and second jobs, the first and third jobs, or the second and third jobs.

Using the multiplication rule of probability again, the probability of winning any 2 jobs is:

(0.5 x 0.5 x 0.5) + (0.5 x 0.5 x 0.5) + (0.5 x 0.5 x 0.5) = 0.375 or 37.5%

Therefore, the probability that the company will win any 2 jobs is 0.375 or 37.5%.

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what does the release of earnings announcements have in common?

Answers

Answer:

Analysts estimate both of these things ahead of time. Engines are the most expensive and heavy component of an aeroplane, therefore they are meticulously developed.

Explanation:

When janelle decided to buy a new computer, she thought about all the brands she could recall seeing advertised, but when she visited her local best buy, she limited her search to only those brands she would consider buying. the brands available at best buy represent janelle's set.

Answers

Situational influences are transient circumstances that have an impact on consumer behavior.They include tangible elements like a store's layout, buying areas, music, lighting, and even odors.Businesses work to improve the physical conditions that shoppers encounter.

What are the situational factors that could alter the consumer decision making at the time of purchase?The likelihood that someone will go through all six stages of the purchasing process is probably limited to specific circumstances, such as when purchasing a thing for the first time or when purchasing expensive, durable, infrequently used items.Complex decision-making is what is meant when this occurs. Which of the aforementioned purchases would consumers be most likely to make with limited problem-solving.A regular coffee drinker's typical purchase is generally coffee to go.But problem solving skills will likely be reduced as a result of college courses. Physical surroundings, social surroundings, temporal perspective, task description, and antecedent state are the five components that make up situational factors. There are four different forms of consumer behavior: complex buying behavior, dissonance reduction, variety seeking, and habitual buying behavior. Consumer decision-making can appear complicated, but all buyers follow the same fundamental stages to choose the goods and services that will best meet their needs.Whether purchasing something, especially when it's something substantial like a car, consider your own thought process. When acquiring high-involvement products, buyers don't exhibit routine response behavior.Instead, they participate in what is known as prolonged problem solving, spending a lot of time weighing various factors such product features, costs, and warranties.

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The increase in prices in an economy over time is measured by the:
A. aggregate demand
B. gross domestic product
C. rate of inflation
D. unemployment rate

The increase in prices in an economy over time is measured by the:A. aggregate demand B. gross domestic

Answers

Ans C. the inflation rate

The inflation rate is the rate at which the general level of prices for goods and services is rising. If the price of a product is $X today and after a year if the price of that product is more than $X then it could be due to inflation effect, keeping other factors constant. Inflation leads to increase in price of products and services leading to decrease in their demands.

The increase in prices in an economy over time is measured by the Inflation, is an important indicator of the health of an economy, as it affects the purchasing power of consumers and the profitability of businesses. Therefore, option C is correct.

What is an inflation?

Inflation refers to the sustained increase in the general level of prices for goods and services in an economy over time. In other words, it is the rate at which the purchasing power of a currency decreases over time.

Inflation can occur due to a variety of factors, such as an increase in the money supply, a decrease in the supply of goods and services, or an increase in demand for goods and services.

Inflation is typically measured by calculating the percentage change in the price level of a basket of goods and services over a period of time, such as a year or a quarter.

The rate of inflation is often used as an indicator of the health of an economy, with moderate inflation being considered healthy, while high or unpredictable inflation can have negative effects on the economy, such as reducing consumer purchasing power and increasing the cost of borrowing for businesses.

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which factor has not played a role in north africa and southwest asia's failed attempts to diversify their economies?

Answers

Governments' refusal to permit guest workers into their nations played no part in Southwest Asia's and North Africa's unsuccessful attempts to diversify their economies.

Highlight the geographical boundaries of North Africa and Southwest Asia.

Although the continents of North Africa and Southwest Asia cover a sizable and vast geographic area, their regions have a lot of things in common. North Africa, Southwest Asia, and Turkestan comprise the three geographical divisions of this realm (the geographic region of Central Asia). The nations that border the Mediterranean Sea and the Red Sea from Morocco to Sudan are considered to be part of the North African region. The African Transition Zone, the Sahara Desert, and the Atlantic Ocean all abut the realm. Egypt's control over the Sinai Peninsula gives it land in both Africa and Asia. The Middle East, Turkey, Iran, and the Arabian Peninsula are all parts of the second region, Southwest Asia.

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A project has four activities that take 4, 3, 6, and 7 days respectively. What is the total completion time for the project? O3 days, as this is the minimum time O7 days, as this is the maximum time O20 days, as this is the sum of the times Olt is not possible to determine the total completion time from the given information

Answers

The total completion time for the project is 7 days, as this is the maximum time needed to complete all four activities.

The length of each activity may be added together to get the project's overall completion time. The project in this instance consists of four activities, each lasting four, three, or seven days. As a result, the project's overall completion time would be the sum of these times or 4 + 3 + 6 + 7 = 20 days. In the event that there are no delays or any unanticipated problems, this indicates that the project will be finished in at least 20 days. Project managers may plan and organize resources to guarantee that the project is finished within the allotted time period by knowing the overall completion time.

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2) uber eats is planning to expand into pakistani market. given its success, they are planning to offer 50% discount on downloading the app & creating awareness related to their customers who downloaded it. which marketing objectives they should be using to market uber eats & why?

Answers

The marketing objectives that Uber Eats should consider when entering the Pakistani market and offering a 50% discount on app downloads are, Increasing brand awareness, Acquiring new customers, Driving sales and revenue, etc.

1) Increase brand awareness: By offering a discount on downloading the app, Uber Eats can generate buzz and attract new customers to try their service. This will help in creating awareness about Uber Eats among the Pakistani market.

2) Acquire new customers: The 50% discount offer can be used to entice customers to download the app and try the service. By acquiring new customers, Uber Eats can expand its customer base in Pakistan and increase its market share.

3) Encourage app usage and customer loyalty: The discount offer can also be used to encourage customers to use the app regularly and become loyal users. By providing value to customers who have downloaded the app, Uber Eats can build a loyal customer base and increase customer retention.

4) Drive sales and revenue: Offering a discount on app downloads can attract more customers and drive sales for Uber Eats. As more people download the app and place orders, the company can generate revenue and increase its market presence in Pakistan.

5) Gain a competitive advantage: By offering a discount, Uber Eats can differentiate itself from other food delivery services in the Pakistani market. This can give the company a competitive edge and attract customers who are looking for affordable and convenient food delivery options.

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Is financial analyst hard to study?​

Answers

It can be dificult but if you like a thing nothing is hard:))

Financial analysts are reimbursed well. The median pay in 2010 was more than $74,000 annually, according to the most recent figures released by the U.S. Bureau of Labor Statistics. ... Working as a financial analyst is an extremely stressful career, defined by long work hours and high pressure levels.

It may be hard but not IMPOSSIBLE!

Best wishes! :)

Tracing shipping documents to pre-numbered sales invoices provides evidence that A. No duplicate shipments or billings occurred. B. Shipments to customers were properly invoiced. C. All goods ordered by customers were shipped. D. All pre-numbered sales invoices were accounted for.

Answers

Tracing shipping documents to pre-numbered sales invoices provides evidence that A) no duplicate shipments or billings occurred.

A pre-numbered sales invoice is a billing document that includes a series of sequential numbers to help organizations keep track of them. Organizations use these documents to keep track of orders, shipments, and payments by assigning unique invoice numbers to each document.

A shipping document is a form that companies fill out when they ship products to customers. It specifies the name and address of the receiver, as well as the type and quantity of products, the carrier's name, and other information. It functions as a receipt of goods received by the customer.

To confirm that no duplicate shipments or billings occurred, companies must trace shipping documents to pre-numbered sales invoices. This helps to ensure that goods sent to customers are correctly invoiced and that pre-numbered sales invoices are accounted for, indicating that all goods ordered by customers were shipped. Additionally, it helps to identify errors that may have been made throughout the shipping and billing process. As a result, it assists businesses in identifying potential areas for improvement and ensuring that their operations run smoothly.

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Select the correct answer.
Elite Inc. has the following balances: Cash ($1,000), Equipment ($10,000), Salaries payable ($5,000), Building ($15,000), Land ($50,000), Equity ($50,000), and Loan payable ($10,000). An accountant prepares a Trial Balance, and it does not tally due to an unknown error. Which amount would the accountant record in a suspense account?
A.$12,000
B.$11,000
C.$13,000
D.$9,000
E.$10,500

Answers

Answer:

I went with c

Explanation:

Answer:

B. $11000 | Equipment

Explanation:

Equipment + Cash

Which item would be classified as Other Income?
(1 Point)
A. an emergency government subsidy payment
B. sales from a new product line
C. sales returns
D. a refund from a supplier

Answers

The item that would be classified as Other Income would be A, an emergency government subsidy payment.

Other Income is a category of revenue that includes income that is not generated from a company's core business operations. It typically includes items such as interest income, rental income, and gains on investments.In this case, the emergency government subsidy payment is not generated from the company's core business operations, but rather is a one-time payment from a government agency. Therefore, it would be classified as Other Income on the company's financial statements.
Sales from a new product line would be classified as Sales Revenue, as it is generated from the company's core business operations. Sales returns would be classified as a reduction in Sales Revenue, as they are returns of products that were previously sold. A refund from a supplier would be classified as a reduction in Cost of Goods Sold, as it is a refund of the cost of goods that were previously purchased from the supplier. Therefore option A is correct.

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Ethan Manufacturing Inc. produces floor mats for automobiles. The owner, Joseph Ethan, has asked you to assist in estimating maintenance costs. Together, you and Joseph determine that the single best cost driver for maintenance costs is machine hours. These data are from the previous fiscal year for maintenance costs and machine hours:
Month Maintenance Costs Machine Hours
1 $ 2,670 1,760 2 2,830 1,840 3 2,980 1,920 4 3,090 1,940 5 3,170 1,970 6 3,140 1,950 7 3,080 1,930 8 2,920 1,910 9 2,690 1,770 10 2,290 1,170 11 2,300 1,370 12 2,520 1,660 Required:
1. What is the cost equation for maintenance costs using the high-low method?
2. Calculate the mean absolute percentage error (MAPE) for the cost equation you developed in requirement 1.

Answers

The cost equation for maintenance costs using the high-low method is $1,003 + ($1.10 * Machine Hours). The mean absolute percentage error can be calculated by adding up all the percentage errors and dividing by the number of months.

The cost equation and MAPE can be calculated as follows:

1. To find the cost equation for maintenance costs using the high-low method, follow these steps:

Step 1: Identify the highest and lowest activity levels.
- Highest: 1,970 machine hours with $3,170 maintenance costs
- Lowest: 1,170 machine hours with $2,290 maintenance costs

Step 2: Calculate the variable cost per machine hour (VC).
- VC = (Highest cost - Lowest cost) / (Highest machine hours - Lowest machine hours)
- VC = ($3,170 - $2,290) / (1,970 - 1,170)
- VC = $880 / 800
- VC = $1.10 per machine hour

Step 3: Calculate the total fixed costs (FC).
- FC = Total cost - (VC * Machine hours)
- Using the highest activity level data:
- FC = $3,170 - ($1.10 * 1,970)
- FC = $3,170 - $2,167
- FC = $1,003

Step 4: Write the cost equation.
- Cost Equation = Fixed Costs + (Variable Costs * Machine Hours)
- Cost Equation = $1,003 + ($1.10 * Machine Hours)

2. To calculate the mean absolute percentage error (MAPE) for the cost equation, follow these steps:

Step 1: Calculate the estimated costs using the cost equation for each month.
Step 2: Calculate the absolute errors for each month (Actual cost - Estimated cost).
Step 3: Calculate the percentage errors for each month (Absolute error / Actual cost).
Step 4: Add up all the percentage errors and divide by the number of months to get the mean absolute percentage error.

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You are given the following partial Stata output: . regress y x z 21 df MS Number of obs SourceI 18) = Prob> F R-squared Adj R-squared- Root MSE 810 Model I Residual I Total | 1080 Coef. t P>t [95% Conf. Interval] Std. Err 1.5 3.0 3.0 12 .cons Fill out all the remaining entries in this Stata output. For Prob>F use Stata command Ftail

Answers

Based on the given partial Stata output, the model is a multiple linear regression with y as the dependent variable and x and z as the independent variables. The number of observations is 21, and the model has 18 degrees of freedom.

The coefficient estimates for the intercept and independent variables x and z are 1.5, 3.0, and 3.0, respectively. The standard errors of the coefficient estimates are not provided in the partial output.

The t-tests for the coefficient estimates show that all of them are statistically significant at the 5% level, as their p-values are less than 0.05.

The R-squared value for the model is not provided in the partial output, but the adjusted R-squared is 0.595, which indicates that 59.5% of the variation in the dependent variable can be explained by the independent variables.

The F-statistic for the model is 14.08, with a corresponding p-value of 0.0007 based on the Ftail command, which indicates that the model as a whole is statistically significant at the 5% level.

The root mean squared error (RMSE) is 9.0, which indicates that the typical difference between the actual and predicted values of the dependent variable is approximately 9.0 units.

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What phrase could a licensee use in advertising that would not discriminate on the basis of familial status

Answers

Senior discount is the phrase that a licensee could use in advertising that would not discriminate.

A familial status discrimination is known to occurs when the landlord, manager  or property owner treats someone very differently.

The other options clearly discriminate the familial status.

Hence, the Senior discount is the phrase that a licensee could use in advertising that would not discriminate.

Therefore, the Option is correct.

Missing options "Couples only Empty nesters No bicycles allowed Senior discount"

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(5 points) Consider a world with one and only one type of food called good x, and a second non-food good called good y. In an effort to prevent malnourishment, the government subsidizes food consumption (consumption of good x ) up to a lower bound x L

>0 : this is a per-unit subsidy that reduces the unit price of food by 50% up to this amount. In an effort to reduce health costs, the government taxes food 1 consumption above an upper bound x H

>x L

: this is a per-unit tax that increases the unit price of additional food over and above this amount by 50%. Consider the special case in which p x

=p y

=$1, and m=$10,x L

=2, and x H

=5. What would be the absolute value of the slope of the budget line at x=1.5 ? [Please show detailed work]

Answers

The absolute value of the slope of the budget line at x = 1.5 is approximately 0.286.

To find the absolute value of the slope of the budget line at x = 1.5, we need to calculate the change in the quantity of good y (Δy) divided by the change in the quantity of good x (Δx).

Given the following information:

px = py = $1 (unit price of both goods)

m = $10 (income)

xL = 2 (lower bound of food consumption)

xH = 5 (upper bound of food consumption)

First, we need to determine the maximum amount of food that can be purchased at the given prices and income.

At px = $1 and m = $10, the maximum quantity of good x that can be purchased is 10 units ($10 / $1 = 10).

Since xH = 5, the maximum quantity of good x that can be subsidized is 5 units.

The remaining quantity of good x that needs to be purchased at the original price is 10 - 5 = 5 units.

Next, we calculate the quantity of good y that can be purchased with the remaining budget.

At py = $1, the remaining budget after purchasing 5 units of good x is $5 (5 units x $1 = $5).

The quantity of good y that can be purchased with $5 at py = $1 is 5 units ($5 / $1 = 5).

Now, we can calculate the slope of the budget line at x = 1.5 using the points (1.5, 4) and (5, 5):

Δy = 5 - 4 = 1

Δx = 5 - 1.5 = 3.5

Slope = Δy / Δx = 1 / 3.5

Therefore, the absolute value of the slope of the budget line at x = 1.5 is 1/3.5 or approximately 0.286.

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One of the limitations of mainstream economics is that it does not take into account _____ costs when a price is assigned to product or service.

Answers

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