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sashaice [31]
3 years ago
14

How does specialization benefit both producers and consumors in a free market economy?

Business
1 answer:
Helen [10]3 years ago
7 0
<span>Through specialization, both producers and consumers benefit. On the producer side, specialization allows producers to best use their resources in the most efficient manner possible by playing to their strengths, thus maximizing profit. On the consumer side, the fact that producers are specialized and thus efficient in their production ensures lower production costs than if products were made by less-specialized producers, translating into lower consumer-facing prices.</span>
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A large bakery buys flour in 25-pound bags. The bakery uses an average of 1,215 bags a year. Preparing an order and receiving a
Alex777 [14]

Answer:

annual demand = 1,215 bags of flour

ordering costs = $10 per order

annual carrying costs = $75 per bag

a. Determine the economic order quantity.

EOQ = √[(2 x S x D) / H]

EOQ = √[(2 x $10 x 1,215) / $75] = 18 bags of flour

b. What is the average number of bags on hand?

average number of bags on hand = 18 / 2 = 9

c. How many orders per year will there be?

total number of orders per year = 1,215 / 18 = 67.5 orders

d. Compute the total cost of ordering and carrying flour.

total cost of ordering flour = 67.5 x $10 = $675

since we assume that the company keeps operating after the year ends, we can use fractions when calculating the number of orders per year

total cost of carrying flour = 9 x $75 = $675

total cost of ordering and carrying flour = $1,350

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2 years ago
The most significant conceptual difference between the arbitrage pricing theory (apt) and the capital asset pricing model (capm)
MrRa [10]
<span>is that the capm recognizes only one systematic risk factor.</span>
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3 years ago
What condition is being met when goods are being produced and sold at the lowest possible average cost​?
marshall27 [118]
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6 0
2 years ago
Jensen Co. expects to pay €50,000 in one month for its imports from France. It also expects to receive €200,000 for its exports
Julli [10]

Answer:

-$5,873

Explanation:

For computation of maximum one month loss in dollars first we need to find out the net exposure and maximum one month loss in percentage which is shown below:-

Net exposure = Received amount - Paid amount

= €200,000 - €50,000

= €150,000

Maximum one - month loss in Percentage = Next month percentage - (Alpha × Euro percentage)

= 2% - (1.96 × 2.5%)

= -2.9%

Maximum one - month loss in Dollars = Net exposure × Current spot rate of the euro × Maximum one - month loss in Percentage

= €150,000 × $1.35 × (-0.029)

= -$5,873

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2 years ago
What is liberal humanism??
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