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3 years ago

If Shawn can produce donuts at a lower opportunity cost than Sue, then ____

Business

1 answer:

Archy [21]3 years ago

4 0

Answer:

(A) Shawn has a comparative advantage in the production of donuts.

Explanation:

Shawn renounce to less goods than Sue when producing donuts.

This meas, Shawn has a comparative advantage in the production of donuts as their cost from the economic point of view are lower.

This do not imply that Sue cannot outproduce Shawn, it means it cost her more than Shawn

For example, if Sue produce 10 Donuts, but to produce donuts resing to produce 20 of other goods, each donut has an opportunity cost of 2

While Shawn can produce 8 donuts and resing to produce 8 of other goods:

each donut has an opportunity cost of 1

Therefore, is better for the overall economy to Shawn produce donuts and trade with Sue for the other good.

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In 2007, Wagner Associates appropriated $65,000 of retained earnings to satisfy the restrictive covenant of a loan agreement. Wh

Dmitry [639]

Answer:

The financial statements effects of the appropriation are as follows:

a) Retained Earnings will reduce by $65,000 in the Income Statement and the Balance Sheet.

b) Cash balance will also reduce by $65,000 in the Balance Sheet.

Explanation:

Normally, partnerships can distribute or appropriate their profits according to their partnership agreements. However, there may be restrictive loan covenants that can specify how much profits partnerships can distribute among the partners. The purpose of such covenants is to ensure that the ability of the partnership to repay loans are not compromised through profit appropriations.

Financial institutions, therefore, to secure the loans advanced to businesses may include restrictive covenants. Some restrictive covenants may specify the minimum cash balance to maintain. Restrictive covenants, generally, remain measures to overcome unwanted business outcomes. It is a form of insurance against loan repayments.

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3 years ago

Read 2 more answers

Eaton Electronics uses a periodic inventory system.

aev [14]

The cost of ending inventory of Eaton Electronics on June 30 is $13,600.

<h3>What is the LIFO method?</h3>

The LIFO method values the cost of goods sold based on the assumption that goods sold are from the latest stock.

For example, using LIFO, Easton would have the two TVs sold based on the cost of the May Purchases instead of specific identification.

<h3>Data and Calculations:</h3>

Beginning inventory (2 x $1,500) = $3,000

April Purchases (4 x $1,450) = $5,800

May Purchases (5 x $1,600)= $8,000

Cost of goods available for sale = $16,800

Cost of goods sold (2 x $1,600) = $3,200

Ending inventory = $13,600 ($16,800 - $3,200)

Thus, the cost of ending inventory is $13,600.

Learn more about the LIFO method at brainly.com/question/10026597

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6 0

2 years ago

Price elasticity of demand measures Select one: A. how responsive sales are to changes in the price of a related good. B. how re

Setler79 [48]

Answer:

Explanation:

Elasticity of demand is the degree of responsiveness of the quantity demanded of a commodity to change in the price of the commodity.

It is of 3 types

1. Price elasticity of demand

2. Income elasticity of demand

3. Cross elasticity of demand

6 0

4 years ago

Read 2 more answers

In an open economy, national saving equals a. domestic investment. b. domestic investment plus net capital outflow. c. domestic

egoroff_w [7]

In an open economy, national saving equals to domestic investment and net capital outflow

Explanation:

In an open economy national saving as considered or calculated an equal to the domestic investment and net capital outflow.

The savings saved by the households are generally deposited in the the banks accounts and banks use this amount to give loans to the business organisation and they make money from these loans.

Apart from this, countries also invests in the other foreign countries which is also considered as domestic (national) saving.

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3 years ago

Where a producer chooses the intensity level of its market coverage, which level is chosen to utilize the “shotgun” approach?

dsp73

Answer:

The level that utilizes the "shotgun" approach to market coverage is:

Intensive Distribution (mass coverage).

Explanation:

This marketing approach aims to reach many consumers through as many sales channels as possible. In this situation, consumers have easy access to the goods or services. The other approaches include Selective Distribution (where few outlets in specific locations are selected for the distribution of the goods and services) and Exclusive Distribution (where limited outlets are chosen because of the target market).

6 0

3 years ago