Answer:
(D) the principle of comparative advantage does not apply to countries with extremely limited resources.
Explanation:
The statement a, b and c are trues, the cost of opportunity reduced because you have more products available, it reduces the price of different prices and services, the trade makes that the nations depend and work together to improve their benefits, usually the trade doesn't benefits all the citizens because some industries improve their performance an other don't it depends of the market.
All the resources al limited, but the principle of the comparative advantage, says that the countries have to put the resources and efforts in a specific economic activities where they are better that other countries, and there are many products that a country could make
Answer:
Credence properties
Explanation:
Dentistry has a Credence property because it is a Service provided by medical specialized professionals. medical diagnoses and legal services have credence properties, or characteristics. A consumer may find a service with Credence property impossible to evaluate even after purchase and consumption. To reduce this uncertainty, service consumer like Sarah turns to personal sources of information like her friends during the purchase decision process
Answer:
The effect that will happen on the net income is an increase in $6,000.
Explanation:
For this product, we have:
Price: $90.
Variable cost: $28
Allocated fixed cost: $18
There is an opportunity to sell 3,000 units at $30, and the firm has excess capacity.
As the allocated fixed cost only counts for the existing level of production (before accepting the 3,000 additional units), they don't matter in the decision.
With excess capacity, the firm only incurs in the variable cost of $28 per unit. If the price is $30, the variation in the net income will be:
The effect that will happen on the net income is an increase in $6,000.
Answer:
"The budgeted cost of goods sold" for June would be $5,640,000
Explanation:
Sales department budget for June = 220,000 units
Less-Opening balance as on 1st June = 72,000 units
Add-Closing balance as on 30th June = 40,000 units
No of unit manufactured = Sales department budget for June - Opening balance as on 1st June + Closing balance as on 30th June
= 220,000 - 72,000 + 40,000
= 188,000 units
Cost per unit = $30
Budgeted cost of manufactured = 188,000 × $30 = $5,640,000
Answer:
d. the firm will lose $750
Explanation:
marginal cost is the derivate of the cost function: It represent the cost of producting an additional unit
cost: 750 + 5q
dC/dQ = 5
We have determinate that marginal cost is $5 thus, we should price at the same value. The mistake from the goverment is to equalize marginal cost with price instead of marginal revenue.
This will make the firm loss the fixed component of the cost as will sale to pay up the variable cost.
The fixed cost is $750 so that is the loss from operations
