Given the above scenario, the total production in the U.S. and Mexico will be maximized if Mexico focuses on Agricultural produce and the US on Manufactured produce.
<h3>What is product maximization?</h3>
Product maximization refers to the process via which two trading nationalities or entities focus on the goods where they have the least opportunity cost.
Thus, n this case, the total production in the U.S. and Mexico will be maximized if Mexico focuses on Agricultural produce and the US on Manufactured produce.
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Answer:
Business to business(B2B), Business to business(B2B)
Explanation:
B2B companies are supportive enterprises that offer the things other businesses need to operate and grow. It is a business transaction that take place among two business owners where one offers his platform to push the product of the other in return for a commission or certain percent cut.
Answer:
The effect on the sale of PV1 would be $3,000 and on PV2 it is $1,500
Explanation:
For computing the effect on the ordinary income, we have to do the following adjustment which is shown below:
PV1 = Sale price-adjusted basis
= $8,000 - $5,000
= $3,000
The $3,000 represent the short term capital gain, and it is a short term capital gain because the equipment is sold in less than 1 year
PV2 = Sale price-adjusted basis
= $16,000 - $18,000
= - $2,000
The $ -2,000 represents the long term capital loss , and it is a long term capital loss because the equipment is sold in more than 1 year
So, the effect on the sale of PV1 would be $3,000 and on PV2 it is $1,500 because the deduction is allowed to a maximum of $1,500
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Answer:
$4,800
Explanation:
The total amount of the premium can be deducted under the 12-month rule. The reason for this is that the insurance does not cover more than 12 months and can not cover any time that is outside the next year end.
