So, a strategic alliance may benefit the combined group in two ways: one, it will enable them to target larger clients without facing significant rivalry
Economies of scale, which are commonly assessed by the quantity of product provided per unit of time, seem to be the cost savings that businesses gain as a result of the significant scale of the economy.
In order to lower manufacturing costs, economies of scale is the method of producing any good at a very high volume. Strategic alliances allow two businesses to more effectively merge their operations.
It will enable them to lower costs through economies of scale. Additional benefits of economies of scale include lower prices for goods or cost focus in the marketplace.
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If you have a friend who is hoping to buy a home in the next few years, what should your friend know about the process of finding and paying for a new home? What do they need to know to make the home-buying process smoother? How does their credit score affect this process? How would your friend determine what is affordable?
Things to consider
FinancingBudgeting.etcYour buddy should engage with a real estate agent to make the home-buying process easier.
Your acquaintance should examine their income, debt, long-term financial objectives, and the cost of homeownership in their desired region to decide what is affordable.
What is a credit score?Generally, When buying a home, there are several things your friend should consider:
Financing: Your friend should determine how much they can afford to spend on a home and what type of mortgage loan they qualify for. They should also research different types of loans and compare interest rates and fees from different lenders. They should also check their credit score and work on improving it if necessary.
Budgeting: Your friend should also create a budget that includes not only the cost of the home, but also closing costs, moving expenses, and ongoing costs of homeownership such as property taxes and insurance.
Searching: Your friend should research different neighborhoods and consider factors such as location, schools, and amenities. They should also tour homes and consider the condition and layout of each.
Making an offer: Once your friend finds a home they want to purchase, they should work with a real estate agent to make an offer that takes into account the home's condition, the local housing market, and the seller's motivation.
Closing: After the offer is accepted, your friend should work with a lender to complete the mortgage process and close on the home.
To make the home-buying process smoother, your friend should also consider working with a real estate agent, who can help them navigate the process and find homes that meet their needs and budget.
Additionally, a good credit score will help your friend qualify for better mortgage rates and terms.
To determine what is affordable, your friend should consider their income, debt, and long-term financial goals, as well as the cost of homeownership in the areas where they're looking to buy.
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Aircraft Products, a manufacturer of aircraft landing gear, makes 2,100 units each year of a special valve used in assembling one of its products. The unit cost of producing this valve includes variable costs of $69 and fixed costs of $55. The valves could be purchased from an outside supplier at $76 each. If the valve were purchased from the outside supplier, 40% of the total fixed costs incurred in producing this valve could be eliminated. Buying the valves from the outside supplier instead of making them would cause the company's operating income to:
Answer:
Increase by $31,500
Explanation:
Calculation to determine the operating income
First step is to calculate the Total relevant cost
DIFFERENTIAL ANALYSIS
MAKE BUY
Variable cost $144,900 $0
(2,100*$69)
Fixed cost $46,200 $0
(2,100*55*40%)
Purchase cost $0 (2100*76) = $159,600
Total relevant cost $191,100 $159,600
Now let determine the Increase or decrease of the company's operating income
Increase by =($191,100- $159,600)
Increase by = $31,500
Therefore Buying the valves from the outside supplier instead of making them would cause the company's operating income to: Increase by $31,500
Niles needs 19,000 to purchase a new car. Niles borrows from his pension plan to pay off the loan because the pension plan loan interest rate is 6% nominal annual rate of interest compounded monthly. The loan payments are to be made at the end of each month. To pay off this loan he will make n payments of 472.82 and an additional smaller payment at the same time as the last 472.82 payment. What is the additional smaller payment (rounded to dollars)
Answer:
$457.06
Explanation:
Number of payments = NPER (I, -Pmt, Fv)
Number of payments= NPER (6%/12, -472.82 ,19000)
Number of payments = 44.97143014
After 44 payments, loan outstanding:
= FV (I, N, Pmt, Pv)
= FV (6%/12, 44, 472.82, -19000)
= $457.06
Hence, the additional smaller payment is $457.06
Dunphy Company issued $44,000 of 10.0%, 10-year bonds at par value on January 1. Interest is paid semiannually each June 30 and December 31. Prepare the entries for (a) the issuance of the bonds and (b) the first interest payment on June 30.
Answer:
S/n Date General Journal Debit Credit
a Jan 01 Cash $44,000
Bonds payable $44,000
b June 30 Interest expense $2,200
($44,000*10%*6/12)
Cash $2,200
January 1, 2021, Woody Forrest Corporation granted executive stock options to purchase 30,000 of its common shares at $7 each. The market price of common stock was $13 per share on December 31, 2021, and averaged $15 per share during the year then ended. There was no change in the 153,000 shares of outstanding common stock during the year. Net income for the year was $28,000. The number of shares to be used in computing diluted earnings per share for the quarter is: Multiple Choice 153,000 169,000 181,000 197,000
Answer:
169,000
Explanation:
Calculation to determine what The number of shares to be used in computing diluted earnings per share for the quarter is:
First step is to calculate the amount assumed to be exercised
Exercised amount= 30,000*$7 / $15avg
Exercised amount= 14,000
Second step is to calculate the Net
Net=30,000-14,000
Net= 16,000
Now let calculate The number of shares to be used in computing diluted earnings per share
Using this formula
Number of shares=Outstanding+Net
Let plug in the formula
Number of shares=153,000 +16,000
Number of shares= 169,000
*diluted eps=$28,000 /169,000
Therefore The number of shares to be used in computing diluted earnings per share for the quarter is: 169,000
2. Elastic goods are based on what consumers want, rather than something that they need to survive. Which of the following is an elastic good?
Osoda pop
water
O an apartment
medicine
Elastic goods or services are those for which demand fluctuates in response to price fluctuations. Consumers who are able and ready to easily shift their purchasing patterns in reaction to price fluctuations are said to be elastic consumers.
Examples of elastic goods:Examples of elastic products include:Soft drinks, like soda pop, are easy for consumers to adapt their consumption based on changes in price or availability because they are not essential for living. Apartments are not necessities for survival, and people can choose where to live depending on a variety of reasons, including price, location, and other considerations.Items like the ones listed below are not elastic goods:Water is a commodity that people will continue to buy even if the price goes up because it is necessary for survival. Because medicine is necessary for preserving health, people will continue to use it even if the cost rises.To know more about elastic goods, refer:
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The CEO of Alta Corp. is dismayed by a lack of effort and insights his directors provide during board meetings. The directors are all outsiders, experienced, and run their own successful firms. The CEO genuinely seeks their greater involvement. What would you recommend?
A) Requiring that the directors own stock in the company.
B) Implementing a director appraisal system.
C) Electing an lead director.
D) All of these choices would increase involvement.
Answer:
Option D) All of these choices would increase involvement.
Explanation:
Corporate governance
This is simply defined as ways used to manage the relationship among stakeholders and to show and control the strategic direction and the firms or organization's performance.
In the United States and some other countries, the primary goal of a firm or organizations is to maximize profits so as to provide a financial gain to its shareholders. Lack of effort and insight can reduce the output generated by firms.
The fact that the directors has no share in the company may be one reason why they are not putting their maximum effort. By giving them little shares in the company, they would put great effort into work so that they can yield more profit. An appraisal will also help them to put effort into work since they are being monitored. And lastly, having a leader can help lead the others into the right direction and focus on meeting goals and objectives of the firm.
Michael's team is trying to determine how they can process shipments more quickly.
He has convened a large group to come up with some ideas, but only a few people pleaare driving the conversation. Which rule of good brainstorming is this violating?
O a) All ideas are recorded
b) No one may criticize another person's idea
c)
Evaluate ideas after everything is on the table
d) Make sure everyone participates
Please no links!! Thx
Answer:
its D
Explanation:
because not all people are talking and only a few are driving it, that makes the answer D.
The rule of a good brainstorming that is being violated is that making sure that everyone is participating by sharing their ideas. Hence, option D is correct.
What is brainstorming?Brainstorming refers to as a session in which a group of people are involved to discuss an important topic and coming at an effective solution when people share their own ideas.
In order to ensure an ideal brainstorming session, it is advisable for Michael's team to ensure that everyone participating in the session put forth their ideas.
Hence, option D holds true regarding brainstorming.
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(Pension Expense, Journal Entries, Amortization of Loss) Gottschalk Company sponsors a defined benefit plan for its 100 employees. On January 1, 2017, the company’s actuary provided the following information.
Accumulated other comprehensive loss (PSC) $150,000
Pension plan assets (fair value and market-related asset value) 200,000
Accumulated benefit obligation 260,000
Projected benefi t obligation 380,000
The average remaining service period for the participating employees is 10 years. All employees are expected to receive benefits under the plan. On December 31, 2017, the actuary calculated that the present value of future benefits earned for employee services rendered in the current year amounted to $52,000; the projected benefit obligation was $490,000; fair value of pension assets was $276,000; the accumulated benefit obligation amounted to $365,000. The expected return on plan assets and the discount rate on the projected benefit obligation were both 10%. The actual return on plan assets is $11,000. The company’s current year’s contribution to the pension plan amounted to $65,000. No benefits were paid during the year.
Instructions
(a) Determine the components of pension expense that the company would recognize in 2017. (With only one year involved, you need not prepare a worksheet.)
(b) Prepare the journal entry to record the pension expense and the company’s funding of the pension plan in 2017.
(c) Compute the amount of the 2017 increase/decrease in gains or losses and the amount to be amortized in 2017 and 2018.
(d) Indicate the pension amounts reported in the financial statement as of December 31, 2017.
Answer: See attachment and explanation.
Explanation:
a. Determine the components of pension expense that the company would recognize in 2017.
Service cost = $52,000
Add: Interest on projected benefit obligation = $380,000 × 10% = $38,000
Less: Actual return on plan asset = ($11000)
Less: Unexpected loss = 200,000 × 10% - 11,000 = ($9000)
Ammortization of prior service cost = $15000
Pension expense = $85,000
b. The journal entry to record the pension expense and the company’s funding of the pension plan in 2017 has been attached.
c. The amount of the 2017 increase/decrease in gains or losses and the amount to be amortized in 2017 and 2018 has been attached.
d. The pension amounts reported in the financial statement as of December 31, 2017 will be $85,000.
In preparing its May 31, 2020 bank reconciliation, Sheffield Corp. has the following information available:
Balance per bank statement, 5/31/20 $41000
Deposit in transit, 5/31/20 5900
Outstanding checks, 5/31/20 4000
Note collected by bank in May 1290
The correct balance of cash at May 31, 2020 is:______.
a. $46900.
b. $41610.
c. $42900.
d. $44190.
Answer:
c. $42900
Explanation:
Calculation to determine what the correct balance of cash at May 31, 2020 is
Using this formula
Correct balance of cash =Balance per bank statement, 5/31/20+Deposit in transit, 5/31/20-Outstanding checks, 5/31/20
Let plug in the formula
Correct balance of cash=$41000+5900-4000
Correct balance of cash= $42900
Therefore correct balance of cash at May 31, 2020 is:$42900
Suppose the price level reflects the number of dollars needed to buy a basket of goods containing one can of soda, one bag of chips, and one comic book. In year one, the basket costs $9.00. In year two, the price of the same basket is $8.00. From year one to year two, there isdeflation at an annual rate of 1.25%. In year one, $72.00 will buy____baskets, and in year two, $72.00 will buy____baskets. This example illustrates that, as the price level falls, the value of money____ .
Answer:
Year 1, Year 2 purchasing power = 8 , 9 (respectively). As price level fall, value of money Increases
Explanation:
Year one purchasing power = Money ($) / Price per basket = 72 / 9 = 8
Year two purchasing power = Money ($) / Price per basket = 72 / 8 = 9
This implies that, as price level falls (from 9 to 8 here) ,the value of money ie purchasing power increases (from 8 to 9)
You have $100,000 to invest in either Stock D, Stock F, or a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 11.4 percent. Assume D has an expected return of 14.9 percent, F has an expected return of 10.8 percent, and the risk-free rate is 5.95 percent. If you invest $50,000 in Stock D, how much will you invest in Stock F? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:$20,000 will be invested in StocK F
Explanation:
The expected return of portfolio is calculated as
Portfolio Expected Return = (wD x rD) + (wF x rF) + (wR x rR) ............................
Where;
Portfolio expected return = 11.4%
wD = Weight of the amount invested in Stock D which is calculated as
Amount invested in Stock D / Total amount invested
= $50,000 / $100,000 = 0.50
rD = Expected Return from Stock D = 14.9%
wF = Weight of the amount invested in Stock F= ?
rF = Expected Return from StocK F = 10.8%
wR = Weight of the amount invested in risk free = one minus the weight of the other two assets= 1 - wD - wF = 1 - 0.50 - wF = 0.50 - wF
rR = Expected Return from Risk free = 5.95%
Putting all the values into the equation, we
that
0.114= (0.50 x 0.149) + (wF x 0.108) + ((0.50 - wF) x 0.0595
0.114= 0.0745 + (wF x 0.108) +0.02975 -0.0595wF
0.114- 0.0745 =wF 0.108 +0.02975 -0.0595wF
0.114- 0.0745--0.02975=wF 0.108-0.0595wF
0.00975=wF (0.108-0.0595)
0.00975=wF 0.0485
wF == 0.00975/0.0485
wF==0.2010 rounded to 0.20
Recall that wF = Amount invested in Stock F / Total amount invested
0.20= Amount invested in Stock F / $100,000
Amount invested in Stock F = 0.20x $100,000 = $20,000
Therefore, $20,000 will be invested in StocK F
Tandang Sora has deposited P33,000 today in an account which will earn 10 percent annually. She plans to leave the funds in this account for seven years earning interest. If the goal of this deposit is to cover a future obligation of P65,000, what recommendation would you make to Tandang Sora?
If Tandang Sora has deposited P33,000 today in an account which will earn 10 percent annually in which she plans to leave the funds in this account for seven years earning interest. The recommendation i would you make to Tandang Sora is: to find an account with either a higher interest rate or deposit a larger sum today.
How to find the face value and the present value?Face Value = 33,000(1.+.10)^7
Face Value = 33,000(1.1)^7
Face value = $64,308
Aunt Tillie will tend to only have to make the amount of $64,308 at the end of seven years based on the given stated arrangement.
Hence, she will have to find an account with either a higher interest rate or deposit a larger sum today.
So, the amount Aunt Tillie should invest today to receive $65,000 after 7 years is calculated as:
Present value = 65,000 / (1.+.10)^7
Present value = 65,000 / (1.1)^7
Present value = $33,355.28
Therefore she should find an account with either a higher interest rate or deposit a larger sum today.
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Preston Industries, Inc. currently manufactures part QX100, which is used in several products produced by the company. Monthly production costs for 10,000 units of QX100 are as follows: Direct materials$82,000 Direct labor$13,000 Variable overhead costs$40,000 Fixed overhead costs$44,000 Total manufacturing costs$179,000 Accounting has estimated that 20% of the fixed overhead costs currently assigned to QX100 would not be needed if the company chose to purchase the part from an outside supplier. Preston currently has the option of purchasing the part from an outside supplier at $16.00 per unit. If the company accepts the offer from the outside supplier, the monthly avoidable costs (that is, costs that would no longer be incurred) would be:
Answer:
$143,800
Explanation:
Particulars Amount
Direct materials $82,000
Direct labor $13,000
Variable manufacturing costs $40,000
Fixed overhead cost (44,000*20%) $8,800
Total monthly avoidable costs $143,800
If the company accepts the offer from the outside supplier, the monthly avoidable costs would be $143,800.
Your restaurant has an annual advertising budget of $6000 and you spent $82.50 per month on social media advertising what percent of your budget is spent on social media advertising.
Answer:
17%
Explanation:
HELP!
Select the correct answer.
Given the following income statement, what is the net income for a given accounting period assuming taxes are $25,000?
Item $
Revenues
Sales 200,000
Expenses
Expenses 15,000
Interest expense 5,000
Cost of goods sold 60,000
Pre-tax income 60,000
Net income
A.
$120,000
B.
$60,000
C.
$35,000
D.
$140,000
E.
$95,000
Answer:
d
Explanation:
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Answer:
I think it is C
Explanation:
so you do 60,000 - 25,000 = 35,000
Assume that a company uses a standard cost system and applies overhead to production based on direct labor-hours. It provided the following excerpt from the standard cost card of its only product: Standard Hours Standard Rate Standard Cost Fixed manufacturing overhead 2 hours $ 6.00 per hour $ 12.00 During the most recent period, the following additional information was available: The fixed overhead budget variance was $10,000 F. The budgeted amount of fixed overhead cost was $285,000. 46,000 direct labor-hours were actually used to produce 24,100 units. What was the actual amount of fixed overhead cost incurred during the period
Answer:
See below
Explanation:
Given the above information, the actual amount of fixed overhead cost incurred during the period is computed as
= Actual units produced × Fixed manufacturing overhead
Given that;
Actual units produced = 24,100
Fixed manufacturing overhead = $12
Then,
The actual cost of fixed overhead incurred for the period is;
= 24,100 × $12
= $289,200
What type of negative business message does this statement convey?
We noted your comment about your problem with our hairstyling gel. Thanks for bringing it to our attention. Could you please message me your email or phone number?
A.
denying a request
B.
explaining a service fault
C.
rejecting a claim
D.
responding to a social media post
E.
apologizing for a mistake
Answer:
most likely D
Explanation:
if i knew completely i would not be on brainly but it is def not the clown above me
plus D seems the most plausible
The Lumber Division of Sheffield Corp. produces and sells lumber that can be sold to outside customers or within the company to the Construction Division. The following data have been gathered for the coming period: Lumber Division: Capacity 120000 board feet Price per board foot $4.50 Variable production cost per bd. ft. $1.25 Variable selling cost per bd. ft. $0.50 Construction Division: Board feet needed 30000 Outside price paid per bd. ft. $4.00 If the Lumber Division sells to the Construction Division, $0.35 per board foot can be saved in shipping costs. If current outside sales are 150000 board feet, what is the minimum transfer price that the Lumber Division could accept
Answer:
$1.4
Explanation:
Calculation to determine the minimum transfer price that the Lumber Division could accept
Using this formula
Minimum transfer price =Variable production cost per bd. ft.+(Variable selling cost per bd. ft. -per board foot saved in shipping costs)
Let plug in the formula
Minimum transfer price= $1.25 +($0.50-$0.35)
Minimum transfer price=$1.25+$0.15
Minimum transfer price=$1.4
Therefore the minimum transfer price that the Lumber Division could accept is $1.4
The constraint at Rauchwerger Corporation is time on a particular machine. The company makes three products that use this machine. Data concerning those products appear below: WX KD FS Selling price per unit $ 335.03 $ 228.31 $ 199.06 Variable cost per unit $ 259.56 $ 173.38 $ 159.91 Minutes on the constraint 6.00 4.30 4.00 Assume that sufficient time is available on the constrained machine to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource
Answer:
$9.79
Explanation:
The computation is shown below:
Particulars WX KD FS
Selling price per unit (i) $335.03 $228.31 $199.06
Less:
Variable cost per unit (ii) $259.56 $173.38 $159.91
Contribution margin per unit $75.47 $54.93 $39.15
Divided by
Minutes on the constraint (iv) 6 4.30 4
Contribution margin per minute $12.58 $12.77 $9.79
A quality analyst wants to construct a control chart for determining whether four machines, all producing the same product, are in control with regard to a particular quality attribute. Accordingly, she inspected 1,000 units of output from each machine in random samples, with the following results:
Machine Total Defectives
#1 23
#2 15
#3 29
#4 13
1. What is the sample proportion of defectives for machine # 1?
a. .023
b. .02
c. .0115
d. .0058
e. .005
2. What is the estimate of the process proportion of defectives for whenever it is under control?
a. .08
b. .06
c. .04
d. .02
e. .01
3. What is the estimate of the standard deviation of the sampling distribution of sample proportions for whenever this process is under control?
a. .016
b. .00016
c. .04
d. .0044
e. .00002
4. What are the control chart lower and upper control limits for an alpha risk of.05?
a. .0128 and.0272
b. .0113 and.0287
c. .013 and.029
d. .0097 and.0303
e. .0068 and.0332
5. For lower and upper control limits of.014 and.026, which machine(s), if any, appear(s) to be out-of-control for process proportion of defectives?
a. machine #3
b. machine #4
c. machines #3 and #4
d. machines #2 and #3
e. none
Explanation is[tex]^{}[/tex] in a file
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When will the U.S. armed forces provide financial aid?
A. during and after your service
B. before, during, and after your service
C. After you have served two years
D. Before and after your service
PLS ANSWER QUICKLY
A company has two departments, A and B, that incur delivery expense. An analysis of the total delivery expense of $9,000 indicates that Dept. A had a direct expense of $1,000 for deliveries. None of the $9,000 is a direct expense to Dept. B. The analysis also indicates that 60% of regular delivery requests originate in Dept. A and 40% in Dept. B. The delivery expenses that should be charged to Dept. A and Dept. B, respectively, are:
Answer:
$5,800; $3,200
Explanation:
Calculation to determine The delivery expenses that should be charged to Dept. A and Dept.
Dept. A and Dept. B
Direct expenses $1,000 $0
Indirect expenses $4,800 $3,200
[$60%*($9,000-$1,000)=$4,800]
[$40%*($9,000-$1,000)=$3,200]
TOTAL $5,800 $3,200
Therefore The delivery expenses that should be charged to Dept. A and Dept. B, respectively, are:$5,800 $3,200
Your reading material illustrates a typical example of what happens if you pay just the minimum monthly payment every month on a credit card balance, In this example, approximately how long will it take to pay off the original dept completely?
Answer: Most credit cards only require you to make a minimum payment each month, which is typically a fixed amount, often $20 to $25, or a percentage of your balance, usually 1 to 3 percent. Paying the minimum is tempting, especially if your budget is tight. But the less you pay now, the more you’ll pay later.
Carrying a credit card balance not only means you’ll be in debt longer, but it also means you can rack up massive amounts of interest, thanks to exorbitant, oftentimes double-digit interest rates.
Explanation:
To give you an idea of just how costly it can be to pay only the minimum on your credit card, personal finance site NerdWallet crunched the numbers and determined the interest costs of paying off debt. It assumed credit card debt of $6,081, which is what the average household with revolving credit card debt owes, and an interest rate of 14.99 percent.
Thanks in advance ! I really need this
Select the correct answer from each drop-down menu.
What is a business?
A business is a commercial ____ engaging in industrial or professional activities undertaken by an individual or a group to earn ____.
Answer:
A business is a commercial enterprise engaging in industrial or professional activities undertaken by an individual or a group to earn profits.
Explanation:
Enterprise - Enterprise refers to a for-profit business started and run by an entrepreneur. And we will often say that people running such businesses are enterprising.
Profits - A financial gain, especially the difference between the amount earned and spent in buying, operating, or producing in the business.
A business is an enterprise that an entrepreneur runs to earn profits by buying, selling, and operating in the industry.
During 2018, Raines Umbrella Corp. had sales of $715,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $446,000, $95,000, and $140,500, respectively. In addition, the company had an interest expense of $70,600 and a tax rate of 21 percent. (Ignore any tax loss carryforward provisions and assume interest expense is fully tax deductible).
a. What is the company’s net income/loss for 2018?
b. What is the company's operating cash flow?
Answer:Net Income/ loss= -$37,100
Raine's operating cash flow= $174,000
Explanation:
Net income/loss for Raines Umbrella Corp In 2018
Sales $715,000
less: Cost of goods sold -$446,000
Administrative and Selling expenses -$95,000
Depreciation -$140,500
EBIT $33,500
less: Interest $ 70,600
Net loss -$37,100
B) Raine's operating cash flow:
= EBIT + Depreciation - Taxes( Since a net loss was recorded by Raines, yhere would be no taxes
= $33,500 + $140,500 - $0
= $174,000
how do you think customer service can contribute to a retail business?
Answer:
In retail, examples good customer service include remembering and appreciating repeat customers, forging a local connection with shoppers, putting your product knowledge to good use, and more.
Which of the following social media options is best for a company wishing to present more of a "story" of the business, one that is less factual but more emotional?
Microblogging
Photo sharing
Text or email
Video sharing
Video sharing, of the following social media options is best for a company wishing to present more of a "story" of the business, one that is less factual but more emotional. Thus, option (d) is correct.
What is business?The most of the business are the used this extemporaneous style of speaking is chance to the employer and employee to the participation of the answering the question about the current project and business policies.
According to the social media is a term used to describe online communication. Social media systems enable users to have discussions, exchange information, and create content for the internet. The business was the improved as the emotional story to the share as the best choice was the video sharing.
As a result, the video sharing is the best option. Therefore, option (d) is correct.
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A PPC is curved because
A. Some productive resources are better at certain tasks than other
resources
B. There is a limited amount of productive resources
C. Some goods are harder to make than other goods
Option C is correct regarding PPC curve.
Why is the PPC a curved line and not a straight line?Since there is a cost associated with making a decision, such as when the amount of one good produced is higher and the quantity of the other is low, it is always represented as a curve rather than a straight line. It is called as opportunity cost.
What is a PPC curve?A model called the Production Possibilities Curve (PPC) illustrates the trade-offs involved in splitting resources between the production of two items. The PPC can be used as an example to explain the ideas of scarcity, opportunity cost, efficiency, and economic growth and contraction. Consider Carmen, a carpenter who divides her time between manufacturing tables and creating bookcases. Given her present resources, the PPC would display the maximum number of tables or bookcases she could erect. If she had rising or constant opportunity costs, the PPC's shape would show it.
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