Answer the below Question and also explain the types of cost discuss in this Question ? Marshal's
Fantastic news! We've Found the answer you've been seeking!
Question:
Answer the below Question and also explain the types of cost discuss in this Question ?
Transcribed Image Text:
Marshal's JPMorgan Chase credit card has a 15 percent interest rate and a rewards program that gives him one point per $1 that he spends. The only option Marshal has for point redemption is a $100 statement credit that would cost him 10,000 points. On January 7, 2012, Marshal noticed he has 8,750 reward points accumulated on his JPMorgan Chase card. On that same day, he received an offer from Bank of America for a credit card with an identical rewards program and an 8 percent interest rate. If Marshal cancels his JPMorgan Chase card and accepts the offer for the Bank of America card, the accumulated 8,750 reward points that he will not be able to redeem are an example of a cost. Marshal's JPMorgan Chase credit card has a 15 percent interest rate and a rewards program that gives him one point per $1 that he spends. The only option Marshal has for point redemption is a $100 statement credit that would cost him 10,000 points. On January 7, 2012, Marshal noticed he has 8,750 reward points accumulated on his JPMorgan Chase card. On that same day, he received an offer from Bank of America for a credit card with an identical rewards program and an 8 percent interest rate. If Marshal cancels his JPMorgan Chase card and accepts the offer for the Bank of America card, the accumulated 8,750 reward points that he will not be able to redeem are an example of a cost.
Expert Answer:
Answer rating: 100% (QA)
The accumulated 8750 reward points that Marshal will not be able to redeem upon canceling his JPMorgan Chase credit card represent an opportunity cost 1 Opportunity Cost Opportunity cost refers to the ... View the full answer
Related Book For
Microeconomics Principles, Problems and Policies
ISBN: 978-1259450242
20th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn
Posted Date:
Students also viewed these economics questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
Assume that the average talk time on an Apple iPhone is 20 hours and that this time follows the exponential probability distribution. What is the probability that a randomly selected iPhone will...
-
The financial statements for the year ended 30 November 20X3 of Springboard Ltd included a provision for doubtful debts at that date of 900. During the year ended 30 November 20X4, the company...
-
An appraiser is looking for comparable sales and finds a property that recently sold for $200,000. She finds that the buyer was able to assume the sellers fully amortizing mortgage which had monthly...
-
The degrees of freedom at the triple point will be (a) 0 (c) 2 (b) 1 (d) 3 .
-
The unadjusted trial balance of Voice Link at November 30, 2016, follows: Additional information at November 30, 2016: a. Accrued service revenue, $600. b. Depreciation, $300. c. Accrued salaries...
-
Windy introduces a new compact music player that carries a two-year warranty against manufacturer's defects. Based on industry experience with similar product introductions, warranty costs are...
-
On January 1, 2021, the general ledger of Grand Finale Fireworks includes the following account balances: During January 2021, the following transactions occur: January 2 Issue an additional 2,000...
-
Suppose there is a perfectly competitive market where firms are currently making a positive economic profit. a) Represent this perfectly competitive market and a single firm in that market with a...
-
In 2006, members of Vietnamese families decided to buy a farm with six chicken houses in Georgia. A \($320,000\) down payment was required for the \($1,490,000\) Georgia Farm. The family members...
-
The four alternatives described below are being evaluated: The Incremental IRRs are: a. If the alternatives are independent, which one(s) should be selected if \(M A R R=15.5\) percent/year? b. If...
-
On November 25, 2013, Arkuszewski filed a petition for relief under Chapter 13 of the Bankruptcy Code. Arkuszewski did not file a certificate regarding a credit counseling briefing by December 9, 14...
-
Floyd Finch and Bruce Campbell were partners in a law firm starting in September 2009. After several years, relations between the two became strained, and Campbell sought to dissolve the partnership....
-
The debtor, Wastetech, LLC (Debtor), was a limited liability company organized under the laws of the State of Georgia in July 2016. The Debtor changed its name from NTC Waste Group, LLC, to...
-
ABC Design provides decorating assistance to its customers. In normal operations, an average of 2.5 customers arrive each hour. One design consultant is available to answer questions and make product...
-
Discuss the information available from the following techniques in the analysis of inorganic pigments used in antique oil paintings: (i) Powder X-ray diffraction, (ii) Infrared and Raman...
-
Some part of income inequality is likely to be the result of discrimination. But other factors responsible for inequality include (select as many as apply): a. Differences in abilities and talents....
-
Suppose that Ike is loss averse. In the morning, Ikes stockbroker calls to tell him that he has gained $1,000 on his stock portfolio. In the evening, his accountant calls to tell him that he owes an...
-
A coalfired power plant can produce electricity at a variable cost of 4 cents per kilowatt hour when running at its full capacity of 30 megawatts per hour, 16 cents per kilowatt hour when running at...
-
Find the z-score that corresponds to each percentile. 1. P 5 2. P 50 3. P 90
-
A veterinarian records the weights of cats treated at a clinic. The weights are normally distributed, with a mean of 9 pounds and a standard deviation of 2 pounds. Find the weight x corresponding to...
-
In a randomly selected sample of women ages 20 34, the mean total cholesterol level is 179 milligrams per deciliter with a standard deviation of 38.9 milligrams per deciliter. Assume the total...
Study smarter with the SolutionInn App