Answer
Hi,
Correct answer option is {a}
Explanation
Comparative advantage occurs when a nation produces a good or service for a lower opportunity cost than other countries. In this case, the advantages of buying their goods or services will surpass the disadvantages. This is to say that country may not be the best nation in production of a particular good or service but the good or service offers a low opportunity cost for other nations to import. A good example is oil-producing nations who have a comparative advantage in chemicals because the oil is locally produced thus a cheap raw material for chemicals as compared to nations without oil production.
Best of Luck!
Answer:
I think the answer is $1,500.
Explanation:
I hope this helps. If the answer is wrong then sorry and you don't have to give me the points. In here I think I did the calculation wrong.
Answer:
Option (B) $5,000
Explanation:
Data provided in the question:
Repayment of Loan = $50,000
Interest = 8%
Cash flow Probability
$65,000 70%
$45,000 30%
Tax rate = 0%
Now,
Interest on loan = 8% of $50,000
= $4,000
Expected value of cash flow = ∑[cash flow × Probability ]
= ( 0.7 × $65,000 ) + ( 0.3 × $45,000 )
= $45,500 + $13,500
= $59,000
The owner's expected cash flow after debt service
= Expected value of cash flow - Interest on loan - Repayment of Loan
= $59,000 - $4,000 - $50,000
= $5,000
Hence,
Option (B) $5,000
Answer:
Given this change in the cost, the adequacy and quality of the estimated cost drivers and costs used by the system will determine the costing results for SR6 under the new system.
Explanation:
A cost driver can be described as the unit of an activity or any factor that makes the cost of an activity to fluctuate. An estimated cost driver is adequate and of the expected quality when quality or quantity is satisfactory or acceptable.
Therefore, given this change in the cost, the adequacy and quality of the estimated cost drivers and costs used by the system will determine the costing results for SR6 under the new system.
Answer: c. No, since the MC and AVC curve intersect at the minimum of AVC
Explanation:
Marginal cost is the cost of producing one extra unit of a product while average cost is the average of all the units produced so far. Therefore, when Marginal cost is low, it pulls the average costs down with it because it will be lower than the Average costs.
However, as Marginal costs start to rise, average cost will still be low because it is taking into account the lower previous marginal costs. Marginal cost will then keep rising until it intersects the average costs at it's minimum. Once this happens Average cost will start being pulled up because the current high costs will on average eclipse the current low costs.
