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3 years ago

Why does competition among traders affect how much of the gains from trade are given to the countries involved in the trade?

Business

1 answer:

erma4kov [3.2K]3 years ago

5 0

Answer:

As competition increases, traders must offer certain advantage to their clients, e.g. lower prices, credit sales, longer payment terms, etc., which end up benefiting their clients, and also traders will be willing to relinquish some of their gains to keep existing clients.

This is exactly the same thing that occurs in a given market when the number of suppliers increases, decreasing the equilibrium price and increasing consumer surplus.

You might be interested in

Consider the following simple economy that produces only three goods: 2009 (Base Year) 2017 Product Quantity Price Quantity Pr

Oxana [17]

Answer:

The answer is $6680

Explanation:

To calculate the Real GDP we use prices from the base year.

GDP = 100x40 + 80x11 + 20x90 = $6680

8 0

2 years ago

The operating ratio for a PC insurer equals _________. A. loss ratio plus the ratios of loss adjustment expenses to premiums ear

FinnZ [79.3K]

Answer:

. E. combined ratio after dividends minus the investment yield

Explanation:

The operating ratio for a PC insurer

can be regarded as the comparison of total expenses of a company compared to net sales generated or the generated revenue. The operating ratio gives the measurement of a overall operational profitability of a firm from both underwriting as well as investment activities. It can be calculated by finding the ratio of

(property's operating expense after substraction of depreciation) and ( the gross operating income). It should be noted that The operating ratio for a PC insurer equals combined ratio after dividends minus the investment yield.

8 0

2 years ago

Hamilton Company reported an increase of $370,000 in its accounts receivable during the year 2018. The company's statement of ca

ki77a [65]

Answer:

amount of net sales = $1370,000

so correct option is b. $1,370,000

Explanation:

given data

Increase in Accounts Receivable = $370,000

Cash Received = $1 million

to find out

amount of net sales

solution

we get here amount of net sales that is express as

amount of net sales = Cash Received + Increase in Accounts Receivable .............1

put here value we get

amount of net sales = $1000000 + $370,000

amount of net sales = $1370,000

so correct option is b. $1,370,000

6 0

3 years ago

Sky Communications (SKY) usually sells a cell phone for $448 plus 12 months of cellular service for $672. SKY has a special, tim

jeka94

Explanation:

The Journal Entry from July 1 and July 31 is shown below:-

1. Cash Dr, $560

To Deferred revenue $560

(Being cash is received)

2. Deferred revenue $336

To Sales revenue $336

(Being 12 months sales service is recorded)

3. Cost of goods sold $280

To Inventory $280

(Being cost of goods sold is recorded)

4. Deferred revenue ($336 ÷ 12) $28

To Service revenue $28

(Being Deferred service revenue is recorded)

Working Note:-

Cellular service revenue = offer price ÷ total cost of phone and service × cellular service

= (($560 ÷ ($448 + $672)) × $672

= $336

3 0

2 years ago

Art's Market barrows $25,000 for three years at 8 percent. Payments are quarterly. Which of these inputs correctly computes the

Ratling [72]

Answer: A. N = 12; 1 = 8/4; PV = 25,000; FV = 0; CPT PMT

Explanation:

A is the correct option because,

N = 12

The period is 3 years but the payments are quaterly so the actual period is;

= 3 years * 4

= 12 quarters/ periods.

I = 8/4

The interest rate is 8% but this is stated as a Yearly value which needs to be adjusted to a quarterly value by dividing it by 4.

PV = 25,000

The Present Value of the loan is $25,000 because this is the amount that Art's Market was given in the present.

When all of this is inputted into the calculator, the answer will be; PMT = $2,363.99.

5 0

3 years ago