1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Radda [10]
3 years ago
11

The town of Chester has an economy composed entirely of two equally sized food companies. Both company Q and company R produce p

eanut butter and jam. Company Q is better at producing jam than Company R which is better at producing peanut butter. In order to maximize output Company R should
A. produce both jam and peanut butter on its own and sell its excess peanut butter to Company Z for additional jam B. reduce its production of peanut butter in order to commit resources to learn how to better produce jam
C. abandon the production of jam to fully specialize in the production of peanut butter and then trade with Company Q for jam
Business
1 answer:
ExtremeBDS [4]3 years ago
8 0

Answer:

C) abandon the production of jam to fully specialize in the production of peanut butter and then trade with Company Q for jam.

Explanation:

According to different theories about trade specialization, a company or even a country should specialize in producing only those products that they can make better than their competition, i.e. have a comparative or absolute advantage in their production.  

In this case, since Company R has a comparative advantage in the production of peanut butter, it should specialize in producing only that. In case they need jam, they should trade with Company Q in order to get some jam. Eventually Company Q  will only produce jam since they have a comparative advantage in jam production.

You might be interested in
Listed below are four interbank cash transfers, indicated by the letters a, b, c and d, of a client for late December 20X1, and
zimovet [89]

Answer:

A. Unaffected

B. Unaffected

C. Understated

D. Overstated

Explanation:

C. Understated.

Understated balance is one that is reported as having a lesser balance than it actually does. example of what could cause the situation in which cash is understated is that when check is written on the disbursing bank on the last day of December with a credit to cash, and an associated debit to some expense account so as to decrease reported profits and taxes be it (direct or indirect tjaxes) for the year.

Another example is when a utility bill that is suppose to be paid by the last day of the month but failed to record the expenses, under the accrual basis of accounting, the company should recognize the expenses now even though the bill is not yet due. Until the bill is recorded, the utilities payable is understated

d. Overstated.

An overstated balance is an account balance that is reported as having a greater balance than it actually does, example of such situation is that in which an employee has misappropriated funds during the year, and draw a check transferring funds to the account with the shortage so as to cover the shortage. As of December 31, the shortage is replaced, with no reduction as yet recorded in the account on which it is drawn.

In second example of understated, expense account is understated and because of this net income is overstated.

5 0
3 years ago
At the end of 2011 Mardle Inc. reported retained earnings of $1,504 . At the end of 2012, the retained earnings were $4,863 . If
fenix001 [56]
Mardle paid $8937 in 2012
8 0
3 years ago
What is a beneficiary? Question 50 options: The person who files insurance claims on your behalf The person who determines wheth
Zina [86]
A beneficiary in the broadest sense is a natural person or other legal entity who receives money or other benefits from a benefactor. For example, the beneficiary of a life insurance policy is the person who receives the payment of the amount of insurance after the death of the insured.
6 0
3 years ago
Alpha Company is looking at two different capital​ structures, one an​ all-equity firm and the other a levered firm with ​$4.6 m
Aleks [24]

Answer:

The break-even EBIT using EPS is $1,288,000.

Explanation:

the break-even EBIT using EPS is the EBIT that will brings EPS under two different capital structure equal.

Denot X is the EBIT.

* We have:

+ EPS in all-equity firm = X/460,000

+ EPS in levered firm = ( X - interest rate)/230,000 = ( X - 4,600,000 x 14%)/230,000 = (X - 644,000) / 230,000.

* We have the equation:

X/460,000 = (X-644,000)/230,000 <=> X/460,000 = 2.8 <=> X = $1,288,000.

So, the break-even EBIT using EPS is $1,288,000.

8 0
3 years ago
Jane decided to incorporate her business under the name of Star, Inc. Before Star was incorporated, Jane signed a contract with
BARSIC [14]

Answer:

D. Star will be liable on the contract only if it adopts the contract.

Explanation:

7 0
2 years ago
Other questions:
  • Assume that Plavor Brands, Inc. has 10,000,000 common shares outstanding that have a par value of $2 per share. The stock is cur
    9·1 answer
  • When you need to satisfy two or more criteria to initiate an event in a program, you must make sure that the second decision is
    9·2 answers
  • Ceteris paribus, when the price of tuition increases, fewer people will choose to go to college. What do we mean by ceteris pari
    9·1 answer
  • Logistics Solutions provides order fulfillment services for dot merchants. The company maintains warehouses that stock items car
    10·1 answer
  • Problem 18-7A Break-even analysis with composite units LO P4 Patriot Co. manufactures and sells three products: red, white, and
    5·1 answer
  • A downhill ski area is experiencing a decline in the number of lift tickets sold, falling revenues, and inadequate profits. The
    5·1 answer
  • Dinklage Corp. has 4 million shares of common stock outstanding. The current share price is $83, and the book value per share is
    12·1 answer
  • Farrar Corporation has two major business segments-Consumer and Commercial. Data for the segment and for the company for March a
    8·1 answer
  • What are the three reasons that companies import?
    5·1 answer
  • Mekia is in high school. She is thinking about possible career choices. Her guidance counselor gave her information about severa
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!