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Monica [59]
3 years ago
7

The impact of increasing, as opposed to constant, costs is to Multiple Choice expand the limits of the terms of trade. intensify

and prolong the comparative advantages that any nation may have initially. cause the bases for further specialization to disappear as nations specialize according to comparative advantage. cause nations to realize economies of scale in those products in which they specialize.
Business
1 answer:
Elden [556K]3 years ago
3 0

Answer:

cause the bases for further specialization to disappear as nations specialize according to comparative advantage

Explanation:

Comparative advantage refers to the advantage while producing the goods and services at a lower cost compared with the competition or rivals in order to gain the maximum share in the market place

Now if there is an increased as compared with the constant so the impact would affect the basis for additional specialization to invisible as the nations specialized as per the comparative advantage

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Answer:

The PV of future cash flow is $22,925,764, therefore the company should take on the project

Explanation:

In order to know if the company should take on the project we have to calculate the PV of future cash flow as follows:

PV of future cash flow=<u>    D1    </u>

                                        RE-g

To calculate this formula we requre to calculate the WACC and the discount rate as follows:

WACC=(1.00/1.80×0.11)+0+(0.80/1.80×0.046)

WACC=0.0611+0+0.02044

WACC=0.081556

WACC=8.16%

After having calculated the WACC we can calculate the project discount rate as follows:

project discount rate=WACC + Additional risk factor

=8.16%+3%

=11.16%

Therefore, PV of future cash flow= <u>$2,100,000</u>

                                                            0.1116-0.02

PV of future cash flow= <u>$2,100,000</u>

                                            0.0916

PV of future cash flow=$22,925,764

The PV of future cash flow is $22,925,764, therefore the company should take on the project

4 0
3 years ago
Elkland Heating &amp; Cooling installs and services commercial heating and cooling systems. Elkland uses job costing to calculat
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Answer:

Estimated manufacturing overhead rate= $15 per direct labor hour

Explanation:

Giving the following information:

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To calculate the estimated manufacturing overhead rate we need to use the following formula:

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7 0
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An explanation for the slope of the LM curve is that as:
adoni [48]

Answer:

The correct answer is letter "C": Income rises, money demand rises, and a higher interest rate is required .

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The Liquidity Preference-Money Supply (<em>LM</em>) shows the relationship between real output and interest rates. According to this approach, the slope of the LM is positive when an increase in interest rates pushes the increase in income. The money supply and demand must be equal for that purpose which implies the demand for money will have to increase as well. Thus, for the LM curve to be positive the interest rates, income, and demand for money must be higher.

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Answer:

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