Answer:
A, $12,000
Explanation:
Profit is the financial gain as a result of the difference between the selling price of a product and the cost/production cost of the product.
To calculate the profit from the sale of the bicycles, we use the formula
Profit = (marginal cost x quantity of bicycles) - Expenses.
we have,
Profit = ($200 x 100) - $8,000
Profit = $20,000 - $8,000
Profit = $12,000.
Cheers.
Answer:
Answer Illustration : Opportunity Cost of producing Wine is lesser in France, Opportunity Cost of producing Sweaters is lesser in Tunisia. So, France has comparative advantage in Wine, Tunisia in Sweater.
Explanation:
Opportunity Cost is the cost of next best alternative foregone while choosing an alternative.
Opportunity Cost of producing Sweaters & Wine in France & Tunisia are quantities of other goods (Sweaters or Tunias) sacrifised while choosing either. Sweater Opportunity Cost - Wines sacrifised, Wine Opportunity Cost - Sweaters sacrifised.
The country has a comparative advantage in a good if it can produce it with relatively less opportunity cost (in terms of other good sacrifised) than other country.
Ex : Production Possibilities
Wine Sweater Trade off (Wine :Sweater)
France 10 5 1:0.5 or 2:1
Tunisia 8 24 1:3 or 0.33:1
- France produces Wine with lesser opportunity cost (sweater sacrifised) than Tunisia [0.5 sweater < 3 sweaters] ; it has comparative advantage in Wine.
- Tunisia produces Sweater with less opportunity cost (wine sacrifised) than France [ 0.33 wine < 2 wines] ; it has comparative advantage in Tunisia
Answer:
E) 1, 2, and 3
Explanation:
A partnership is a very flexible business which is very easy to set up but has some disadvantages also and they include:
- partners have unlimited liability.- if losses are expected to continue, then the partners will probably decide to liquidate the partnership.
- risks of disagreements between the partners.- if the partners are incompatible and cannot agree upon the decisions that need to be made, the partnership will probably be liquidated
- if the partners decide to leave because they retire then the partnership will probably have to be liquidated unless a new partner replaces the one that leaves or the other partners buy his/her share of the partnership.
