Opportunity cost of a worker wandering around the floor Concept Introduction Opportunity cost: Opportunity Cost is the loss of benefit incurred by a person by choosing an alternative course of action. It is the benefit given up when an option is rejected during decision making and another option is selected.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 2, Problem 1BCQ

To determine

Opportunity cost of a worker wandering around the floor

Concept Introduction

Opportunity cost: Opportunity Cost is the loss of benefit incurred by a person by choosing an alternative course of action. It is the benefit given up when an option is rejected during decision making and another option is selected.

Expert Solution & Answer

Explanation of Solution

Determination of Opportunity cost of allowing a worker to wander off on the factory floor from one task to the other.

Opportunity costs that is associated with having a worker wander across the factory floor from task to task or in search of tools and parts are:

The time saved as it was easy to move the products from one assembly team to another.

The portion of the floor saved by keeping inventory on need basis.

Thus, B saved 50% time of the workers wandering off in the factory and 40% of the floor space.

Conclusion:

Thus, opportunity cost for the workers who were wandering across the factory floor is reduced in time by 50% and for the spare parts, opportunity cost is reduced by 40% of floor area.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

4. Consider a put on the same underlier (Cisco). The strike is $50.85, which is the forward price. The owner of the call has the choice or option to buy at the strike. They get to see the market price S1 before they decide. We assume they are rational. What is the payoff from owning (also known as being long) the put? What is the payoff from selling (also known as being short) the put? Payoff from Put with Strike of k=$50.85 S1 Long $100 $95 $90 $85 $80 $75 $70 $65 $60 $55 $50.85 $50 $45 $40 $35 $30 $25 Short

The following table provides information on two technology companies, IBM and Cisco. Use the data to answer the following questions. Company IBM Cisco Systems Stock Price Dividend (trailing 12 months) $150.00 $50.00 $7.00 Dividend (next 12 months) $7.35 Dividend Growth 5.0% $2.00 $2.15 7.5% 1. You buy a futures contract instead of purchasing Cisco stock at $50. What is the one-year futures price, assuming the risk-free interest rate is 6%? Remember to adjust the futures price for the dividend of $2.15.

5. Consider a one-year European-style call option on Cisco stock. The strike is $50.85, which is the forward price. The risk-free interest rate is 6%. Assume the stock price either doubles or halves each period. The price movement corresponds to u = 2 and d = ½ = 1/u. S1 = $100 Call payoff= SO = $50 S1 = $25 Call payoff= What is the call payoff for $1 = $100? What is the call payoff for S1 = $25?

Answer 2

Question

Chapter 2, Problem 1BCQ

To determine

Opportunity cost of a worker wandering around the floor

Concept Introduction

Opportunity cost: Opportunity Cost is the loss of benefit incurred by a person by choosing an alternative course of action. It is the benefit given up when an option is rejected during decision making and another option is selected.

Expert Solution & Answer

Explanation of Solution

Determination of Opportunity cost of allowing a worker to wander off on the factory floor from one task to the other.

Opportunity costs that is associated with having a worker wander across the factory floor from task to task or in search of tools and parts are:

The time saved as it was easy to move the products from one assembly team to another.

The portion of the floor saved by keeping inventory on need basis.

Thus, B saved 50% time of the workers wandering off in the factory and 40% of the floor space.

Conclusion:

Thus, opportunity cost for the workers who were wandering across the factory floor is reduced in time by 50% and for the spare parts, opportunity cost is reduced by 40% of floor area.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 2, Problem 1BCQ

To determine

Opportunity cost of a worker wandering around the floor

Concept Introduction

Opportunity cost: Opportunity Cost is the loss of benefit incurred by a person by choosing an alternative course of action. It is the benefit given up when an option is rejected during decision making and another option is selected.

Expert Solution & Answer

Explanation of Solution

Determination of Opportunity cost of allowing a worker to wander off on the factory floor from one task to the other.

Opportunity costs that is associated with having a worker wander across the factory floor from task to task or in search of tools and parts are:

The time saved as it was easy to move the products from one assembly team to another.

The portion of the floor saved by keeping inventory on need basis.

Thus, B saved 50% time of the workers wandering off in the factory and 40% of the floor space.

Conclusion:

Thus, opportunity cost for the workers who were wandering across the factory floor is reduced in time by 50% and for the spare parts, opportunity cost is reduced by 40% of floor area.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 2, Problem 1BCQ

To determine

Opportunity cost of a worker wandering around the floor

Concept Introduction

Opportunity cost: Opportunity Cost is the loss of benefit incurred by a person by choosing an alternative course of action. It is the benefit given up when an option is rejected during decision making and another option is selected.

Expert Solution & Answer

Explanation of Solution

Determination of Opportunity cost of allowing a worker to wander off on the factory floor from one task to the other.

Opportunity costs that is associated with having a worker wander across the factory floor from task to task or in search of tools and parts are:

The time saved as it was easy to move the products from one assembly team to another.

The portion of the floor saved by keeping inventory on need basis.

Thus, B saved 50% time of the workers wandering off in the factory and 40% of the floor space.

Conclusion:

Thus, opportunity cost for the workers who were wandering across the factory floor is reduced in time by 50% and for the spare parts, opportunity cost is reduced by 40% of floor area.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 2, Problem 1BCQ

To determine

Opportunity cost of a worker wandering around the floor

Concept Introduction

Opportunity cost: Opportunity Cost is the loss of benefit incurred by a person by choosing an alternative course of action. It is the benefit given up when an option is rejected during decision making and another option is selected.

Expert Solution & Answer

Explanation of Solution

Determination of Opportunity cost of allowing a worker to wander off on the factory floor from one task to the other.

Opportunity costs that is associated with having a worker wander across the factory floor from task to task or in search of tools and parts are:

The time saved as it was easy to move the products from one assembly team to another.

The portion of the floor saved by keeping inventory on need basis.

Thus, B saved 50% time of the workers wandering off in the factory and 40% of the floor space.

Conclusion:

Thus, opportunity cost for the workers who were wandering across the factory floor is reduced in time by 50% and for the spare parts, opportunity cost is reduced by 40% of floor area.

Answer 6

Chapter 2, Problem 1BCQ

To determine

Opportunity cost of a worker wandering around the floor

Concept Introduction

Opportunity cost: Opportunity Cost is the loss of benefit incurred by a person by choosing an alternative course of action. It is the benefit given up when an option is rejected during decision making and another option is selected.

Expert Solution & Answer

Explanation of Solution

Determination of Opportunity cost of allowing a worker to wander off on the factory floor from one task to the other.

Opportunity costs that is associated with having a worker wander across the factory floor from task to task or in search of tools and parts are:

The time saved as it was easy to move the products from one assembly team to another.

The portion of the floor saved by keeping inventory on need basis.

Thus, B saved 50% time of the workers wandering off in the factory and 40% of the floor space.

Conclusion:

Thus, opportunity cost for the workers who were wandering across the factory floor is reduced in time by 50% and for the spare parts, opportunity cost is reduced by 40% of floor area.

Answer 7

Chapter 2, Problem 1BCQ

To determine

Opportunity cost of a worker wandering around the floor

Concept Introduction

Opportunity cost: Opportunity Cost is the loss of benefit incurred by a person by choosing an alternative course of action. It is the benefit given up when an option is rejected during decision making and another option is selected.

Answer 8

Expert Solution & Answer

Explanation of Solution

Determination of Opportunity cost of allowing a worker to wander off on the factory floor from one task to the other.

Opportunity costs that is associated with having a worker wander across the factory floor from task to task or in search of tools and parts are:

The time saved as it was easy to move the products from one assembly team to another.

The portion of the floor saved by keeping inventory on need basis.

Thus, B saved 50% time of the workers wandering off in the factory and 40% of the floor space.

Conclusion:

Thus, opportunity cost for the workers who were wandering across the factory floor is reduced in time by 50% and for the spare parts, opportunity cost is reduced by 40% of floor area.