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4 years ago

What is the difference between absolute advantage and comparative advantage?

2 answers:

6 0

Comparative advantage<span> refers to the ability of a party to produce a particular good or service at a lower opportunity cost than another.Hope you like:)</span><span>
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kogti [31]4 years ago

5 0

Answer: on edge its A ) Comparative advantage measures opportunity cost and absolute advantage measures efficiency.

Explanation:

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A journal entry includes a debit to Salaries and Wages Expense of $5,000; a debit to Salaries and Wages Payable of $3,000; and a

riadik2000 [5.3K]

Answer: The entry is a reflection cash payment of $8000 which is a reduction of liabilites of $3000 on salaries payable and an expense of $5000 incurred on salaries.

Explanation: The transaction coud be a typical scenario of a payment for salaries previously due provided for while also paying for the presently incurred salaries expense.

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4 years ago

The current price of a stock is $22, and at the end of one year its price will be either $27 or $17. The annual risk-free rate i

e-lub [12.9K]

Answer:

Based on the binomial model, the option's value is $3.00

Explanation:

The stock range of payoffs in one year is $27 - $17 = $10.

At expiration, if the stock price is $27, the option will be worth

= $27 - $22

= $5

And the option will be worth zero, if the stock price $17.

The range of payoffs for the stock option is $5 & $0 ; 0 = $5.

Equalize the range to find the number of shares of stock:

Option range/Stock range = $5/$10

= 0.5

With 0.5 shares, the stock options payoff will be either $13.5 or $8.5. The portfolio & options payoff will be

$13.5 - $5 = $8.5, or $8.5 $0; 0 = $8.5.

The present value of $8.5 at the daily compounded risk-free rate is: PV = $8.5 / (1+ (0.06/365))365 = $8.005.

The option price is the current value of the stock in the portfolio

minus the PV of the payoff: V = 0.5($22) - $8.005 = $3.00.

Therefore, Based on the binomial model, the option's value is $3.00

7 0

3 years ago

ABC Co. wants to market their products in Brazil. Armed with the design and manufacturing capability, ABC looks for a company wi

dimaraw [331]

Answer:

a) joint venture

Explanation:

Joint venture

It is the type of business , where the two or more parties agree to sum their finance to in order achieve a specific target or to start a business together .

Which can be a new project or any new activity .

The profit or loss is distributed with respect to their contribution in the share .

Hence , the company ABC forms a joint venture with the XYZ Inc .

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3 years ago

How does the economic boom affect a business or your business?

shepuryov [24]

Answer:

The answer is easy and simple to understand.

First of all, it ill be generally good for your business, price levels of materials required and services will remain at a reasonable level so you can afford them.

Moreover, the cost of financing will be bearable and low. Since the interest rates are low, more money can be borrowed to expand your business venture.

Economic book means more employment opportunities, and as the supply of labor increases. the cost or the wage rate can remain at a reasonable and fair level for both the employers and employees.

The currency exchange rates will be stable and will not deviate heavily during the economic boom period, making importing and importing fairly easy for your business.

However, since the economy is rigorous and healthy, more entrepreneurs will enter the market and the competition will be sever.

Moreover, foreign investors and businesses with new technologies, products and practices may enter your market, making it a bit difficult for you.

Explanation:

4 0

4 years ago

The subject property of an appraisal has only two bedrooms, but one of the comparables used in the appraisal has three. If the a

Anna11 [10]

A $5,000 decrease to the comparable selling price is the answer.

If the adjustment for the third bedroom is 5000, then the adjustment should be done by subtracting 5000 from the similar selling price, and the price to compare will be a better price.

In the case of a sales appraisal model, It is constantly attempted to increase or reduce the similar selling price, and therefore will be attempted to decrease the comparable selling price by $5000.

Land valuation, property valuation, or real estate appraisal refers to the process of determining the market worth of a home or real estate.

To know more about property appraisal click here:

brainly.com/question/26080329

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3 0

2 years ago