Answer:
B. Switzerland has the comparative advantage in watches.
Explanation:
Comparative Advantage is when an economy can produce a commodity with comparatively less opportunity cost in terms of other good sacrifised, than other economy.
It can also be denoted as an economy's more relative productivity in consumption, compared to other economy.
Watch Chocolate
Switzerland 1 50
Germany 1 100
Switzerland can produce a watch by sacrifising lesser units of chocolate i.e 50, than Germany - which sacrifises 100 watches chocolates for a watch production.
Switzerland is 0.02 (1/50) times productive in watch than chocolate. Germany is lesser i.e 0.01 (1/100) time productive in watch than chocolate. Also, Germany is more productive in chocolate than watch 100X > 50X.
So, Switzerland has comparative advantage in Watches & Germany in Chocolate.
Answer:
NPV of the annuity = $209,782.38
Explanation:
Note: See the attached file to see how the Present Values (PV) and the Net Present Value (NPV) are calculated.
The following explanation should be read with the attached.
i = Monthly interest rate = 3%/12 = 0.25%, or 0.0025
DF = Discounting factor = (1 + i)^n = (1 + 0.0025, where n denotes relevant month
Number of months = 30 years * 12 months = 360 months
CF = Cash Flow = P + 5, where P denotes previous payment
Answer: calculated by dividing total liabilities by net worth.
Explanation:
The debt to equity ratio is used to know how credit worthy a company is. This is gotten by dividing the total liability of a company by the equity of the shareholder.
It should be noted that the debt t equity ratio isn't gotten dividing your assets by liabilities. Therefore, based on the information given above, the answer is A.
The closing argument.
Hope this helps!
Answer:
Explanation:
Revenue is given by the number of rides per day (Q) multiplied by the price per ride (p):
The number of rides 'Q' for which the derivate of the revenue function is zero is the revenue-maximizing number of rides:
The price per ride at an activity of 5000 rides per day is:
Therefore, the revenue-maximizing price is $5
