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3 years ago

How does a country determine whether it has a comparative advantage in the production of certain goods?

Business

1 answer:

Sergeu [11.5K]3 years ago

7 0

Answer:

Comparative Advantage: A country has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity in terms of other commodity is lower in that country as compared to the other country.

For determining comparative advantage, countries compare their good's opportunity cost with the other country's goods opportunity cost.

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In order to produce a new product, a firm must lease equipment at a cost of $100,000 per year. The managers feel that they can s

bezimeni [28]

Answer:

$73 = unitary variable cost

Explanation:

<u>To calculate the unitary variable cost that will yield the break-even point, we need to use the following formula:</u>

Break-even point in units= fixed costs/ contribution margin per unit

50,000= 100,000 / (75 - unitary variable cost)

3,750,000 - 50,000unitary variable cost= 100,000

3,650,000 = 50,000unitary variable cost

$73 = unitary variable cost

5 0

3 years ago

A local transit authority charges $1 for a bus ride. An economics study suggests that in the price range from $0.50 to $1.50,

Sunny_sXe [5.5K]

Answer:

To increase its revenue, transit authority should lower the fare.

Explanation:

The 'elasticity of demand' measures the change in consumers response in quantity he demands as a result of the change in price, other factors remaining same.

A product is called elastic if with the increase or decrease in price, there is a drastic change in the quantity demand of the product. If the transit authority will lower its fare, then their revenue will increase as the elasticity of demand for bus trip is 1.2. By lowering the fare, the demand would increase and their revenue will increase.

5 0

3 years ago

Based upon the following data, what is the cost of the land? Land purchase price $196,981 Broker's commission 18,718 Payment for

dexar [7]

Answer:

$219,084

Explanation:

The cost of the land to be recorded includes the purchase price of the land as well as other cost incurred in the process of making the land available for use.

Any amount received as a result of this purchase in form of rebates and discounts will be deducted from the cost.

Hence the cost of the land

= $196,981 + $18,718 + $3,885 - $500

= $219,084

8 0

3 years ago

Geneva needs additional capital to launch her business but does not want to share management responsibility with partners. Neith

Talja [164]

Answer:

The answer is: C) S corporation

Explanation:

Geneva should choose an S Corporation. In my opinion she should do it because corporate income, losses, deductions, and credits are passed through to its shareholders, while it can be managed like a normal corporation.

If she chooses a Limited Liability Partnership she would still have to share management responsibility with her partners and C Corporations are heavily taxed. If she had enough money she could start a sole proprietorship business, but she doesn't have enough money.

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3 years ago

Bill Hickey is an employee of the Middleburg school district, and John Morgan is associated with that district as well. At meet

Ipatiy [6.2K]

Answer:

c. Bill is the superintendent of schools, and John is the chair of the school board

Explanation:

Bill is the superintendent of schools, and John is the chair of the school board

3 0

3 years ago