QUESTION 12 1 points Save Answer Which of the following is an example of an impl

Question

QUESTION 12 1 points Save Answer Which of the following is an example of an implicit cost for a firm? forgone rent on property owned by firm any wages and salaries paid to employed. the value of time worked by the owner both a and c all of the above QUESTION 13 1 points Save Answer A risk premium is an additional compensation paid to the workers of a business enterprise. subtracted from the discount rate when calculating the present value of a future stream of profits. a measure calculated to reflect the riskiness of future profits. lower the more risky the future stream of profits. QUESTION 14 1 pointsSave Answer Economic theory is a valuable tool for business decision making because it creates a realistic, complex model of the business firm. assumes away the problem provides an easy solution to complex business problems. identifies for managers the essential information for making a decision.

Explanation / Answer

12.

D

Foregoing rent on property and not taking salary for the time worked, is the example of implicit cost.

13.

C

Risk premium is used to identify the additional return required from the risky project.

14.

D

Economic theory helps managers to make informed decisions so that they can achieve successful results.

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