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Tema [17]
4 years ago
14

Consider the following production possibilities frontier model for an economy that produces only two goods: corn and smartphones

. 0 20 40 60 80 100 100 80 60 40 20 0 SMARTPHONES (Millions) CORN (Millions of bushels) PPF Which of the following is true regarding this economic model? The fact that there are only two goods produced in this theoretical economy is a simplifying assumption that still allows economists to demonstrate key economic concepts. This PPF is not an economic model. The fact that there are only two goods produced in this theoretical economy, when, in reality, economies produce many more types of goods, means this model is generally useless. In order to construct such a model, an economist would need real life data regarding countries that only produce two goods.
Business
1 answer:
olga55 [171]4 years ago
4 0

Answer:

The fact that there are only two goods produced in this theoretical economy is a simplifying assumption that still allows economists to demonstrate key economic concepts.

Explanation:

PPF model the production possibility frontier states that two types of goods can be produced, at any given time of production, and for certain resources provided.

This clearly states the thought and simplifies the understanding of economy, based on two products to be produced from same restricted resources.

Though, the results of this curve are applicable to real world goods, where the nature and number of goods both are complex.

Therefore, the correct statement is:

As stated in answer.

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Credenza Industries is expected to pay a dividend of $ 1.25 at the end of the coming year. It is expected to sell for $ 70 at th
Setler [38]

Answer:

$4.64

Explanation:

The total gains for a stock can be broadly classified as both capital gains and dividend gains The capital gain depends on the price of market of the stock prevailing at the time the stock is purchased and the time of the stock sales. For a given firm, dividend gain depends on the dividend policy  

From the question given, let us analyze the following,

the expected capital gain value calculated from the sale of the given stock is   The current stock value is given by:

(price of the stock after a year + the expected dividend) / capital equity cost

($70 + $1.25) / (1+9%)

= $71.25/1.09 = 65.36  

Then,

The capital gain expected from the sale of the stock is given by:

 Expected selling price after a year -the stock current value

 $70 - $65.36

= $4.64

6 0
4 years ago
Allocative inefficiency due to unregulated monopoly is characterized by the condition:____.
Lerok [7]

Allocative inefficiency due to unregulated monopoly is characterized by the condition: P>MC.

Allocative inefficiency happens whilst the purchaser does no longer pay a green price. A green charge is one that just covers the costs of manufacturing incurred in supplying the good or provider. Allocative efficiency occurs while the company's fee, P, equals the greater (marginal) cost of delivery, MC

Monopolies can boom fees above the marginal fee of manufacturing and are allocative inefficient. that is because monopolies have marketplace strength and may boom rate to reduce client surplus.

Allocative efficiency occurs while consumer demand is completely met by means of supply. In other words, organizations are presenting the precise supply that clients want. For an instance, a baker has 10 customers trying an iced doughnut. The baker had made exactly 10 that morning – that means there's an allocative performance.

Learn more about Allocative efficiency  here:

brainly.com/question/14471969

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7 0
2 years ago
Policymakers sometimes propose laws requiring firms to give workers certain fringe benefits, such as health insurance or paid pa
zimovet [89]
I would say that the effects of such positive benefits as health insurance or paid parental leave will make the workplace much more attractive and cause a big rush to obtain employment at such places. It is well to remember that without the sacrifice of labour unions including jailings, beatings and even deaths these benefits would not be there ie they would not come just out of the goodness of someone's heart.
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4 years ago
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The correct option that should be employed by the company is C) .

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