Can you operate a lift if its raining inside the vechile

3. According to their comparative advantage, Alphaland specializes in axes and Betaville specializes in batons. Alphaland will t

Nady [450]

Answer: Option (C) is correct.

Explanation:

A country has a comparative advantage in producing a commodity if the opportunity cost of producing that good is lesser in that country as compared to the other country.

From the information given in the question, it is clear that Alphaland has a comparative advantage in axes and Betaville has a comparative advantage in batons.

Hence, Alphaland will trade axes for batons only if the price of batons is lower than the cost of producing it in Alphaland. So that there is a possibility mutually beneficial trade.

7 0

3 years ago

How we identify it’s a business?

Alekssandra [29.7K]

Answer:

when it involves two or more buyers buyers and sellers

3 0

2 years ago

Read 2 more answers

A firm has $600,000 in current assets and $150,000 in current liabilities. Which of the following is correct if it uses cash to

Molodets [167]

Answer:

4) Net working capital will not change.

Explanation:

The best answer to the question is the 4th option. The net working capital will not be changed if company would be usingcash to pay off their accounts payable. Also the difference that exists between current assets and current liabilities will also stay the same way as it was before. current ratio will go up to 5.5.

Thank you.

4 0

3 years ago

A manufacturing firm has an annual demand of 300,000 units. Using its current operation, the firm pays $800,000 in annual fixed

Elodia [21]

Answer:

It is cheaper to make the units in-house by $300,000.-

Explanation:

First, we need to calculate the total avoidable production costs of making 300,000 units:

Total variable cost= 300,000*15= $4,500,000

Total avoidable fixed cost= 800,000 - 200,000= $600,000

Total production cost= $5,100,000

Now, the total differential cost of buying:

Cost of buying= 300,000*18= $5,400,000

It is cheaper to make the units in-house.

5 0

3 years ago

If the United States wanted to reduce the cost of its goods in foreign markets, it could ________ its currency.

Kruka [31]

Answer:

Devalue its currency

Explanation:

Exchange Rate is the conversion rate of domestic & foreign currency.

Eg $1 = _ € .

Devaluation means deliberate fall in value of domestic currency in terms of foreign currency (increase in foreign exchange rate) , under fixed exchange rate by government.

Eg : $1 = 5€ - change to - $1 = 7€ . This implies dollar can purchase less amount of euro , and has depreciated.

However , this would also lead to reduce the cost of its exports in foreign (here European market) , because US $ has become cheaper in terms of their currency & hence so have been their goods.

3 0

3 years ago