Answer:
Indicate whether each of the following statements is true or false. Statement True False
1. True
2. False, the gains from specialization and trade are based on comparative advantages.
3. False, sometimes countries need to trade or are forced to trade, and that doesn't always result in both benefiting from trade or everyone in the country benefiting from trade.
4. True, as long as they have different opportunity costs in the production of some goods.
5. False, workers that are employed in importing companies will favor trade since their whole business is based on trade.
Explanation:
Answer: $6000
Explanation:
Financing activities are all activities that a corporation undertakes to affect the company's long-term liabilities or equity.
You list the following activities
- receipts from customers
- receipt from bank for long-term borrowing
- payment to suppliers
- payment of dividends
- payment to workers
- payment for machinery
Any receipts to customers or payments to suppliers are short-term reimbursements for labor or purchase of product, and as such are not included in the financing activity cash flows. Your payments for machinery are not financing activities either as machinery is not considered a liability, rather, it is an asset for the company.
However, your receipt from the bank for long-term borrowing and payments of dividends affect both long-term liabilities and equity, and those are reflected on the financing cash flows as such
Receipts from the bank for long-term borrowing - $7500
Payment of dividends - ($1500)
Net cash flows from financing activities - $6000
Answer:
2 Braided Customers
Explanation:
Given:
Services Rate per customer = 25 $
Marginal Revenue Product = 50 $
Marginal Product = (Marginal Revenue Product / Service rate per customer)
Marginal Product = 50 / 25
Marginal Product = 2 Braided Customers
The decision to expand depends on the marginal cost of serving more clients and the marginal revenue he will earn from serving more clients.
<h3>What is marginal cost and marginal revenue?</h3>
Marginal revenue is the change in total revenue when output is increased by one unit. Marginal cost is the change in total cost when consumption is increased by one unit.
Economic theory suggests that output should be increased if the marginal revenue exceeds the marginal cost. If marginal cost is greater than marginal revenue, the business should not be expanded. Profit is maximised when marginal revenue is equal to marginal cost.
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