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marusya05 [52]
3 years ago
12

In Lurnee, it takes 10 resources to produce 1 ton of cocoa and 13.5 resources to produce 1 ton of rice. In South Tyberg, it take

s 40 resources to produce 1 ton of cocoa and 20 resources to produce 1 ton of rice. Lurnee has a comparative advantage over South Tyberg in cocoa. This follows the theory of comparative advantage, and we can say that engaging in free trade benefits all countries that participate in it; however, this conclusion stems from which of these inaccurate assumptions?
A. We have assumed that agrarian nations do not specialize in producing particular products.
B. We have assumed the prices of resources and exchange rates in the two countries are dynamic.
C. We have assumed diminishing returns to specialization.
D. We have assumed constant returns to scale.
E. We have assumed there are barriers to the movement of resources from the production of one good to another within the same country.
Business
1 answer:
Nostrana [21]3 years ago
5 0

Answer: We have assumed constant returns to scale.

Explanation:

Comparative advantage simply stated that an economy should produce the goods whereby the said economy has a lower opportunity cost than its counterpart.

Based on the analysis in the question, the inaccurate assumption is that we have assumed constant returns to scale. This means that an increase in the inputs such as capital and labour which are used in producction will also cause an identical increase in output. In reality, this isn't always true.

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Two of the major advantages of a pass-through entity are that investors can _______ and _______. (choose two correct answers)
prisoha [69]

Two of the major advantages of a pass-through entity are that investors can assume the tax deductions and losses earnings.

An option to lower taxable income is a tax deduction. A standard deduction is a single, predetermined deduction. Higher-income taxpayers frequently have considerable deductible expenses, such as state and local taxes paid, mortgage interest, and charitable contributions, which is why itemized deductions are popular.

Any expense that is deemed "ordinary, necessary, and reasonable" and aids in the revenue generation of a firm is tax deductible. Usually, it is subtracted from the business's income before taxes.

Learn more about tax deduction here

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7 0
2 years ago
Eakins Inc.'s common stock currently sells for $45.00 per share, the company expects to earn $2.75 per share during the current
Amiraneli [1.4K]

Answer:

0.37%

Explanation:

Since the expected payout ratio and earning per share is given, so we compute the current dividend which is shown below:

= Earning per share × payout ratio

= $2.75 × 70%

= $1.925

Now the cost of retained earning would be

= Current year dividend ÷ price + Growth rate

=  $1.925 ÷ $45  + 0.06

= 10.28%

And, the cost of new stock would be

= Current year dividend ÷ price × (1 - flotation cost) + Growth rate

=  $1.925 ÷ $45 × (1 - 0.08)  + 0.06

= 10.65%

So, the exceed cost would be

= 10.65% - 10.28%

= 0.37%

6 0
3 years ago
What do you mean by quality control ? Discuss the need for controlling quality of goods and services ?
swat32

Answer:

Explanation:

Quality control can be defined as a process by which a manufacturer or producer maintains the standard or quality of it's product.

This is to ensure that quality of the product is maintained over time and also gives room for improvement.

The need for controlling quality of goods and services:

1. It is to ensure the quality of the product does not depreciate over time.

2. To ensure little or not error is made during production process.

3. Quality control is done to ensure a great customer satisfaction.

4. It also helps to increase consumers confidence in a product.

5. Quality control gives room for improvement on the quality of a product.

4 0
3 years ago
You estimate that you will owe $40,200 in student loans by the time you graduate. If you want to have this debt paid in full wit
Verizon [17]

Answer:

$413.73

Explanation:

The amount that i will pay per month for the period of 10 years in order to paid the debt of the $40,200 shall be determined through the present value of annuity formula which is given as follows:

Amount borrowed by me=present value of annuity=R[(1-(1+i)^-n)/i}

In the given question

Amount borrowed by me=present value of annuity=$40,200

R=amount to be paid per month

i=interest rate compounded monthly=4.35/12=0.3625%

n=number of payments involved=10*12=120

Amount borrowed by me=present value of annuity=R[(1-(1+i)^-n)/i]

$40,200=R[(1-(1+0.3625%)^-120)/0.3625%]

R=$413.73

             

6 0
3 years ago
What is it called when you make money on<br> the percentage of the total sales you make?
katen-ka-za [31]

Answer:

Commission

Explanation:

Commission is a payment based on the amount of sales an employee makes and is usually based on a percentage of total sales.

8 0
3 years ago
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