If the country can produce a good or service at a lower opportunity cost, it has a comparative advantage.
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What is comparative advantage?</h3>
- In an economic model, agents have a comparative advantage over others if they can produce that good at a lower relative opportunity cost or autarky price, i.e. at a lower relative marginal cost prior to the trade.
- Comparative advantage describes the economic reality of trade advantages for people, firms, or nations as a result of disparities in their factor endowments or technological progress.
- (The absolute advantage, comparing output per time (labor efficiency) or per quantity of raw material (monetary efficiency), is typically considered more intuitive but less accurate – productive trade is possible as long as the opportunity costs of manufacturing commodities vary between countries.)
Therefore, if the country can produce a good or service at a lower opportunity cost, it has a comparative advantage.
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If Terri an remember a wide range of facts it is most likely that she will remember what she ate for lunch. Also, it is true that with the mind that she has she will most likely be good at trivia games where her memory of many facts will help her to excel.
Answer:
Jan. 22
Dr Cash $7,140,000
Cr Common Stock $6,300,000
Cr Paid in capital in excess of par $840,000
Feb. 27
Dr Cash $180,000
Cr Preferred Stock $135,000
Cr Paid-In Capital in Excess of Par-Preferred $45,000
Explanation:
Preparation of the entries for January 22 and February 27.
Jan. 22
Dr Cash $7,140,000
(210,000*$34)
Cr Common Stock $6,300,000
(210,000*$30)
Cr Paid in capital in excess of par $840,000
($7,140,000-$6,300,000)
Feb. 27
Dr Cash $180,000
(15,000*$12)
Cr Preferred Stock $135,000
(15,000*$9)
Cr Paid-In Capital in Excess of Par-Preferred $45,000
($180,000-$135,000)
Answer:
It must shut down
Explanation:
Even at the lower average variable cost, which is 3.50 dolllar will be lossing money given a market price of 3.00 dollar
Considering is not making enough to cover the variable cost the best option is to shut down and only take a hit for the fixed cost until it can totally exit the market. If it tries to produce it will only make thinks worse as producing generates more losses
Answer:
Option (b) is correct.
Explanation:
(a) Net Income:
= Revenues - Expenses
= $77,000 - $48,600
= $ 28,400
(b) Retained earnings :
= Net Income - Dividend
= $ 28,400 - $7,700
= $20,700
(c) Stockholders' Equity:
= Total assets - Total Liabilities
= 185,000 - $105,000
= $80,000
Therefore, the retained earnings at December 31, 2016 were $20,700.
