Answer:
Increased international trade, especially exports, increases production efficiency which allows a country to move beyond its production possibilities frontier.
Explanation:
In business terms, a production possibilities frontier is a curve that shows how much two products in an economy are able to produce when the two products are competing over the same limited resources. The curve can also be used to determine the quantity of a product that can be produced in an economy when the economy is working at its maximum efficiency. There are many factors that affect the production possibilities frontier, namely;
International trade:
Trade is the exchange of goods and services for commercial interests. International trade involves trade between countries. Most countries trade in the form of exports and imports. Exports are goods and services taken to foreign countries while imports are goods and services received from other countries. When there are greater exports than imports, it means that more of your goods and services are on demand by other countries thus makes your currency stronger. An increased demand for domestic goods and services increases production efficiency which allows a country to move beyond its production possibilities frontier.
Answer:
Do = $2.00
D1= Do(1+g)1 = $2(1+0.2)1 = $2.40
D2= Do(1+g)2 = $2(1+0.2)2 = $2.88
D3= Do(1+g)3 = $2(1+0.2)3 = $3.456
D4= Do(1+g)4 = $2(1+0.2)4 = $4.1472
D5= Do(1+g)5 = $2(1+0.2)5 = $4.97664
PHASE 1
V1 = D1/1+ke + D2/(1+ke)2 + D3/(1+ke)3 +D4/(1+ke)4 + D5/(1+ke)5
V1 = 2.40/(1+0.15) + 2.88/(1+0.15)2 + 3.456/(1+0.15)3 + 4.1472/(1+0.15)4 + 4.97664/(1+0.15)5
V1 = $2.0870 + $2.1777 + $2.2723 + $2.3712 + $2.4742
V1 = $11.3824
PHASE 2
V2 = DN(1+g)/ (Ke-g )(1+k e)n
V2 = $4.97664(1+0.02)/(0.15-0.02)(1+0.02)5
V2 = $5.0762/0.1435
V2 = $35.3742
Po = V1 + V2
Po = $11.3824 + $35.3742
Po = $46.76
Explanation: This is a typical question on valuation of shares with two growth rate regimes. In the first phase, the value of the share would be obtained by capitalizing the dividend for each year by the cost of equity of the company. The dividend for year 1 to year 5 was obtained by subjecting the current dividend paid(Do) to growth rate. The growth rate In the first regime was 20%.
In the second phase, the value of shares would be calculated by taking cognizance of the second growth rate of 2%. In this phase, the last dividend paid in year 5 would be discounted at the appropriate discount rate after it has been adjusted for growth.
Answer:
Explanation:
In order to earn money and produce goods that improve lives, self-directed gain would provide jobs, and subsequently wages for others.
The way people can become wealthy by their own efforts is to sell what they produce to others. As the business grows, labor is hired to produce more. This is the 'invisible hand' concept that turns self-directed gain into social and economic benefits for all.
Answer:
Cash account in the amount of $10,100
Explanation:
The journal entry to be recorded for the receipt of payment is as:
Cash A/c.............................................Dr $10,100
Note receivable A/c...................Cr $10,000
Interest Revenue A/c..................Cr $100
Being recoded the receipt of payment
As payment is received so asset is increasing and any increase in asset is debited. Therefore, cash account is debited. And the note receivable got decrease will be credited and the interest revenue is also credited.
Computation of interest revenue is as:
Interest revenue = Amount × % of note × Days / Number of days in a year
= $10,000 × 6% × 60 / 360
= $100
Note: Assume 360 days in a year
992 candy bars must be sold to maximize revenue.
<h3>
What is revenue?</h3>
- The total amount of income generated by the sale of goods and services related to the primary operations of the business is referred to as revenue in accounting.
- Commercial revenue is also known as sales or turnover.
- Some businesses make money by charging interest, royalties, or other fees.
To find how many candy bars must be sold to maximize revenue:
The price of a candy bar is determined by the quantity sold:
- p(x) = 124 - (x/16) where x is in 1000s.
If the candy bar's price is p(x), the revenue function is:
- R(x) = p(x) · x = 124 · x - x²/16
Find the solution of R'(x) = 0 to maximize R(x):
- R'(x) = 124 - x/8
- 124 - x/8 = 0
- x = 992
Therefore, 992 candy bars must be sold to maximize revenue.
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The correct question is given below:
If the price of a candy bar is p(x) cents then x thousand candy bars are sold. The price p(x) = 124-(x/16). How many candy bars must be sold to maximize revenue?
