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2 years ago

What is the principle of comparative cost advantage

Business

1 answer:

Harlamova29_29 [7]2 years ago

7 0

Answer:

The comparative cost principle underlines the fact that two countries will stand to gain through trade so long as the cost ratios for two countries are not equal. On the basis of Table 2.3, country A specialises in the production of X commodity, while country B specialises in the production of Y commodity.

Explanation:

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Refer to Exhibit 5-5. If the airline charges price P1 for both aisle seats and middle seats, the result will be Group of answer

OverLord2011 [107]

Answer:

a surplus of middle seats and the equilibrium quantity of aisle seats.

Explanation:

Aisle seats are already preferred by people. So, increasing rate of middle seats will make people more attracted towards aisle seats. So, a surplus of middle seats and the equilibrium quantity of aisle seats.

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3 years ago

Top hedge fund manager Sally Buffit believes that a stock with the same market risk as the S&P 500 will sell at year-end at

Rus_ich [418]

Answer:

a. 9,50%

b. $47.09

Explanation:

a) Discount rate on the stock

Average Risk Premium of Stock = 7.60%

Current risk-free rate = 1.60%

Discount Rate = 7.60% + 1.90%

Discount Rate = 9.50%

b) Current Price = ($41 + $2) / (1 + 9.50%)^1

Current Price = $43 / (1.0950)^1

Current Price = $43 / 0.91324

Current Price = $47.0851035872278

Current Price = $47.09

Note: Stock price equals the present value of cash flows for a 1-year horizon (Fv + Dividend)/(1+ Discount rate)^n

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2 years ago

Containerization was developed to facilitate long-distance transport by ________ before transferring to trucks and trains.

Savatey [412]

Containerization was developed to facilitate long-distance transport by ________ before transferring to trucks and trains.

SHIP

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3 years ago

Productivity at the Wisconsin branch of Big Box Manufacturing has decreased significantly over the last twelve months. Aaron, th

34kurt

Answer:

State the primary message, lay out supporting reasons, and conclude with a call to action. 

Explanation:

Indeed, as a branch manager, Aaron needs to state the primary message he has for the company's leadership team, which is to improve manufacturing.

Next, he should lay out supporting reasons such as the discoveries from his research which shows that many employees are spending significant time on social media while at work.

Finally, conclude with a call to action. 

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3 years ago

our oldest daughter is about to start kindergarten at a private school. Tuition is $10,000 per year, payable at the beginning of

kykrilka [37]

The present value of the tuition payments if the interest rate is 5% per year will be $130,000.

<h3>What is Present value?</h3>

Present value is used to arrive a sum that need to be invested to reach a particular future value.

Since the inflation rate is equal to discount rate, then, the P.V. will equal to the sum of the Tuition fee for 13 years.

Present value = Tuition fee * Number of years

Present value = $10,000 * 13 years

Present value = $130,000

In conclusion, the present value of the tuition payments if the interest rate is 5% per year will be $130,000.

What is the principle of comparative cost advantage​

What is the principle of comparative cost advantage