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
Mrrafil [7]
3 years ago
11

Oscar and Julia can both produce either bananas or coffee. Oscar can produce either 16 pounds of coffee and 0 pounds of bananas

or 64 pounds of bananas and 0 pounds of coffee. Julia can produce either 20 pounds of coffee and 0 pounds of bananas or 40 pounds of bananas and 0 pounds of coffee.
Which of the following statements is true?

a)The opportunity cost of 1 lb. of bananas is 4 lbs. of coffee for Oscar.

b)Oscar has absolute advantage in the production of coffee.

c)Julia has comparative advantage in the production of bananas.

d)The opportunity cost of 1 lb. of coffee is 4 lbs. of bananas for Oscar.
Business
1 answer:
Aneli [31]3 years ago
4 0

Answer:

d)The opportunity cost of 1 lb. of coffee is 4 lbs. of bananas for Oscar.

Explanation:

a)The opportunity cost of 1 lb. of bananas is 4 lbs. of coffee for Oscar.

In order to produce 64 pounds of banana, Oscar has to give up producing 16 pounds of coffee, his opportunity cost is:

C= \frac{16}{64}= 0.25

The statement is false.

b)Oscar has absolute advantage in the production of coffee.

Julia has a higher production capacity for coffee (20 pounds to 16 pounds) and therefore has the absolute advantage.

The statement is false.

c)Julia has comparative advantage in the production of bananas.

Julia has a higher opportunity cost for producing a pound of bananas (0.5 pounds of coffee to 0.25 pounds of coffee) and therefore does not have the comparative advantage.

The statement is false.

d)The opportunity cost of 1 lb. of coffee is 4 lbs. of bananas for Oscar.

In order to produce 16 pounds of coffee, Oscar has to give up producing 64 pounds of banana, his opportunity cost is:

C= \frac{64}{16}= 4

The statement is true.

You might be interested in
Sheffield borrowed $701000 on October 1, 2017 and is required to pay $721000 on March 1, 2018. What amount is the note payable r
Georgia [21]

Answer:

On October 01, 2017

The amount actually borrowed that is $ 701,000 will be recorded as liability/note payable on october 01, 2017. The following accounting entry will be passed

Debit Cash Asset           $ 701,000

Credit Note payable       $ 701,000

Interest recognized from October 1 to December 31, 2017

The premium amount paid on redemption will be recorded as interest over the period of time. The interest amount is

Interest = 721,000 -701,000 = $ 20,000

So this above calculated expense will be recognized as an expense over loan period.

5 0
3 years ago
Amy has a card shop. She receives a shipment of Valentine's Day cards in December 2011 made by a card manufacture in that month.
Firdavs [7]

Answer:

The contributions of these transactions is a reduction to GDP by $500 in 2011 and an increase in GDP by $800 in 2012.

Explanation:

GDP is the abbreviation for gross domestic product which is the monetary value of all finished products (goods and services) made within a country during a specific period (usually a year). In the determination of a country's GDP, imports are subtracted while exports or sales are added.

Therefore considering that Amy received a shipment of Valentine's Day cards in December 2011 paying a total of $500 and sold all the cards for a total of $800 in February 2012, the contributions of these transactions is a reduction to GDP by $500 in 2011 and an increase in GDP by $800 in 2012.

6 0
3 years ago
The owner of a major league baseball team can fire employees for not winning a pennant, have the city build him a new ballpark,
lawyer [7]
<span>Weber would consider this an exercise in power in the social stratification model. The owner has the ability to have others do what he wants them to do. He is able to set goals that can be achieved even with others opposing them.</span>
4 0
3 years ago
For each item listed below, indicate in the space to the right whether the item would be considered a product cost or a period c
Katena32 [7]

Answer:

1. Factory supervisory salaries  <u><em>Production Cost</em></u> Factory Overhead

2. Sales commissions Period Cost Selling expense

3. Income tax expense Period Cost tax expense

4. Indirect materials used <u><em>Production Cost</em></u> Factory Overhead

5. Indirect labor <u><em>Production Cost </em></u>Factory Overhead

6. Office salaries expense Period Cost Administrative expense

7. Property taxes on factory building <em><u>Production Cost</u></em><em> </em>Factory Overhead

8. Sales manager's salary Period Cost Selling expense

9. Factory wages expense <em><u>Production Cost </u></em>Direct Labor

10. Direct materials used   <em><u>Production Cost</u></em> Direct Materials

Explanation:

A period cost is any cost that cannot be capitalized into prepaid expenses, inventory, or fixed assets

Period cost goes straight to expense account

While

Production Cost do capitalizes through Inventory and later recognize as cost of goods sold.

3 0
3 years ago
Which of the following utilizes a sales technique in which a company representative known as a​ consultant, distributor, or advi
likoan [24]

Answer:

E. Party plan system

Explanation:

Based on the information provided within the question it can be said that the term being described is called a Party Plan System. This is a marketing approach where a company disguises an marketing tactic within an social event where they sell their product directly and in person. Since the customer base is already there.

8 0
2 years ago
Other questions:
  • The City issued $2 million in general obligation bonds to acquire a fleet of vehicles for the Central Motor Pool Internal Servic
    10·1 answer
  • On January 1, Year 3, Boxwood, Inc. issues 1,000 shares of $1 par value common stock for $30 per share. Later that year, the com
    8·1 answer
  • G refer to the given data. if your taxable income increases from $4,000 to $5,000, you will encounter a marginal tax rate of:
    13·1 answer
  • You are working in an open-plan office. the workstations are badly arranged. you do not have sufficient space to store everythin
    8·1 answer
  • How much does a trumpet weigh?
    8·2 answers
  • g Suppose Phil and Miss Kay are the only consumers in the market. If the price is $12, then the market quantity demanded is Ques
    5·1 answer
  • What are the 3 functions of banks?
    15·1 answer
  • The following is an example of the moral-hazard problem: Homebuyers do not properly evaluate the risks involved in buying a home
    6·1 answer
  • Alvin's Transport has total credit sales for the year of $182,000 and estimates that 3% of its credit sales will be uncollectibl
    12·1 answer
  • Amateurs who cash bad checks because of some financial crisis but have little identification with a criminal subculture are call
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!