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2 years ago

Is beyond the firm's capabilities to produce domestically but could be achieved by trading with another country?

1 answer:

4 0

Absolute advantage is beyond the firm's capabilities to produce domestically, but could be achieved by trading with another country.

<h3>What is Absolute advantage?</h3>

Adam Smith, an economist from the 18th century, introduced the idea of absolute advantage in his book The Wealth of Nations to explain how nations might profit from trade by specializing in producing and exporting the things that they can manufacture more successfully than other nations.

International trade is the trade where countries import and export the goods to the other countries so that all the countries have some resources.

Thus, it is absolute advantage.

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A restaurant is considering adding fresh brook trout to its menu. Customers would have the choice of catching their own trout fr

valentinak56 [21]

Answer:

$19.95

Explanation:

Breakeven is where when total Cost = Total Revenue,

Let Selling Price = X

Total Revenue = Total cost

X*800 = 10,600+6.70*800

800x = 15960

Hence, selling Price(X) = 15960/800 = $ 19.95

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3 years ago

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Akila loves to think about how the physical world works. she believes there are advanced civilizations on other planets. accordi

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<span>Akila loves to think about how the physical world works. she believes there are advanced civilizations on other planets. according to john holland's six categories of people, she is most likely in the realistic category. The answer to the missing blank is realistic.</span>

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3 years ago

g Miller Brooks is planning to purchase a new mobile phone plan. However, she is not sure about which plan to select. The regula

yulyashka [42]

Answer:

The platinum plan should be selected.

Explanation:

This can be determined using the following 4 steps:

Step 1: Calculation of the total expected minutes in a month

Total number of expected minutes in a month = Number of hours Miller is expected to use her phone per month * Numbe of minutes in one hour = 21 hour * 60 minutes = 1,260 minute

Step 2: Calculation of the expected cost of regular plan

Expected fixed cost of 1,000 minutes per months = $55

Expected cost of minutes over 1,000 minutes = (Total number of expected minutes in a month - 1,000 minutes) * Cost per minute = (1,260 - 1,000) * $0.33 = 260 * $0.33 = $85.80

Expected cost of regular plan = Expected fixed cost of 1,000 minutes per months + Expected cost of minutes over 1,000 minutes = $55 + $85.80 = $140.80

Step 3: Calculation of the expected cost of platinum plan

Expected fixed cost of 1,200 minutes per months = $100

Expected cost of minutes over 1,200 minutes = (Total number of expected minutes in a month - 1,200 minutes) * Cost per minute = (1,260 - 1,200) * $0.25 = 60 * $0.25 = $15

Expected cost of platinum plan = Expected fixed cost of 1,200 minutes per months + Expected cost of minutes over 1,200 minutes = $100 + $15 = $115

Step 4: Decision

Expected cost of regular plan = $140.80

Expected cost of platinum plan = $115

Since the expected cost of platinum plan of $115 is lower than the expected cost of regular plan of $140.80, the platinum plan should be selected.

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3 years ago

Assume that you manage a $10.00 million mutual fund that has a beta of 1.05 and a 9.50% required return. The risk-free rate is 4

nignag [31]

Answer:

The required rate of return of Portfolio is 8.83%

Explanation:

First we need to find the risk Premium of Existing Portfolio using the CAPM model.

Required rate of return = RF + ( Rm - RF ) x Beta

9.50% = 4.20% + ( Rm - RF ) x 1.05

9.50% - 4.20% = ( Rm - RF ) x 1.05

5.30% = (Rm - RF) x 1.05

(Rm - RF) = 5.30%/1.05

(Rm - Rf) = 5.05%

Second we need to find the New Portfolio Beta Using the Following step

Portfolio Beta = ( Existing Portfolio / Total Investment ) x Beta + ( New stock / Total Investment ) x Beta

Portfolio Beta = (10M / 15M) x 1.05 + (5M/15M) x 0.65 = 0.9167

Third Step we will use the CAPM model again to get Required Rate of Return of New Portfolio.

Required rate of return = RF + ( Rm - RF ) x Beta

Required rate of return = 4.20% + 5.05% x 0.9167

Required Rate of Return = 8.83%

5 0

4 years ago

Wetherald Products, Incorporated, has a Pump Division that manufactures and sells a number of products, including a standard pum

algol13

Answer:

Minimum transfer price = $86

Explanation:

Pump Division is operating at full capacity, hence it has no excess capacity

This implies that it can not produce enough to meet both the internal demand (from the Pool Division ) and external buyers.

Hence, it implies that Pump Division cannot accommodate the demands of the Pump Division at a price lower than the external price of $86. Any price lower than $86 would result into a loss in contribution.

To maximize and optimize the group profit, the minimum transfer price should be set as follows:

Minimum transfer price = External selling price at which Pump Division sells to outside customers

Minimum transfer price = $86

7 0

3 years ago