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ikadub [295]
3 years ago
8

A certain production possibilities frontier shows production possibilities for two goods, jewelry and clothing. Which of the fol

lowing concepts cannot be illustrated by this model?
Business
2 answers:
svetoff [14.1K]3 years ago
7 0

Answer:

A certain production possibilities frontier shows production possibilities for two goods, jewelry and clothing. The following concepts can not be illustrated by this concept:

  • the flow of dollars between sellers of jewelry and clothing and buyers of jewelry and clothing.

Explanation:

  • A Production Possibilities Frontier also known as the Production Possibility Curve or Transformation Curve. This curve illustrates a country or a business is utilizing its resources effectively by showing the point at which that country or business is producing its products efficiently.
  • This curve is unable to tell you the flow of dollars between the seller and buyers of goods of a business or a country.
  • It only tells us about the production of goods not the flow of cash.
igor_vitrenko [27]3 years ago
7 0

Answer: The answer is inflation

Explanation:

Production possibility curve is the locus of points showing the various combination of two commodities that can be produced using the available resources and the available technology. The production possibility curve is a analytical tool which explained the problem of making a choice and opportunity cost., it is used to explain that the cost of producing a particular commodity is the amount of another commodity that must be sacrificed. The production possibility curve can be used to explain the following economic concept

Opportunity cost : This is cost of sacrificing one commodity for the other.This is the alternative forgone in order to produce that commodity.

Full employment : The point on the curve is used to indicate when the country is having full employment or when the country is having an efficient use of resources

Unemployment : The point inside the curve is used to indicate when the country is having unemployment or when such a country is having inefficient use of resources.

Economic growth : The outward shift of the curve indicate that the country is having economic growth, it is used to show when there is an increase in output per head in an economy.

Investment : The production possibility curve is also used to explain when there is increase in investment in the country, in the sense that, investment occurs when more capital goods and fewer consumer goods are produced.

However, The production possibility curve cannot be used to explain the concept of inflation in an economy of a country. In the sense that, in the period of inflation the taste and desires of consumers are not correctly influenced by the prices of goods and services, during inflation less of goods and services are purchased by consumers because inflation reduced their purchasing power.

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Following is the income statement information from Apollo Medical Devices.
Llana [10]

Answer:

$ in thousands) 2020

Net sales $4,163,770

Cost of sales before special charges 1,382,235

Special inventory obsolescence charge 27,876

Total cost of sales 1,410,111

Gross profit 2,753,659

Selling, general and admin expense 1,570,667

Research and development expense 531,086

Explanation:

3 0
2 years ago
Jim's Espresso expects sales to grow by 10.3 % next year. Using the following statements and the percent of sales​ method, forec
stepladder [879]

Answer:

Jim's Espresso

The forecasted costs will be :___________

a. Costs                = $110,168

b. Depreciation    = $6,575

c. Net Income      = $70,482

d. Cash                = $16,600

e. Accounts receivable  = $2,283

f. Inventory          = $4,511

g.​ Property, plant, and equipment = $11,085

Explanation:

a) Data and Calculations:

Sales growth = 10.3%

Balance Sheet

Assets                                                         Percentage of sales

                                                                   Current      Forecast

Cash and Equivalents              $15,050     0.07357    $16,600

Accounts Receivable                    2070     0.01012         2,283

Inventories                                    4090     0.01999         4,511

Total Current Assets                $21,210      

Property, Plant and Equipment 10,050     0.04913        11,085

Total Assets                             $31,260

Liabilities and Equity:

Accounts Payable                     $1,580

Debt                                             3930

Total Liabilities                         $5,510

Stockholders' Equity               25750

Total Liabilities and Equity   $31,260

Income Statement:              Current      %              Forecast

                                               Year

Sales                                 $204,560      1              $225,630

Costs Except Depreciation (99,880)     0.48827     (110,168)

EBITDA                              $104,680      0.51173

Depreciation                         (5,960)     0.02914        (6,575)

EBIT                                    $98,720      0.48260

Interest Expense (net)              (410)     0.00200

Pretax Income                    $98,310      0.48059

Income Tax                         (34,409)     0.16821

Net Income                        $63,901      0.31238       $70,482

The forecasts are based on sales of the current year and the next year.

5 0
2 years ago
Epley Industries stock has a beta of 1.30. The company just paid a dividend of $.30, and the dividends are expected to grow at 4
rusak2 [61]

Answer:

The cost of equity using the DCF method: 4.39%.

The cost of equity using the SML method: 15.01%.

Explanation:

a. The cost of equity using the DCF method:

We have: Current stock price = Next year dividend payment / ( Cost of equity - Growth rate) <=> Cost of equity = Next year dividend payment/Current stock price + Growth rate = 0.3 x 1.04/80 + 4% = 4.39%.

b. The cost of equity using the SML method:

Cost of equity = Risk free rate + beta x ( Market return - risk free rate); in which Risk free rate is rate on T-bill.

=> Cost of equity = 6.3% + 1.3 x ( 13% -6.3%) = 15.01%.

6 0
3 years ago
A large account previously written off in a prior year was unexpectedly collected in the current year. as a result, the current
spin [16.1K]

In the given case the accounts were previously written off by debiting the Allowance for doubtful debts accounts now in order to revive these accounts receivable, we should Debit the Accounts Receivable and credit the Allowance for doubtful debts accounts. Hence the account to be credited is Allowance for doubtful debts accounts.

Hence the answer shall be Allowance for doubtful debts accounts


6 0
3 years ago
Security markets provide liquidity:________
Keith_Richards [23]

Answer:

C. by allowing corporations to raise funds by selling new issues and by creating a market in which owners may easily turn an investment into cash through its sale

Explanation:

Naturally, a security market is seen to permit you do more with your actual savings within your saving periods. It is seen to aid over the counter trading which is seen to occur directly between the trader and the broker. In certain cases that can be termed marketable securities, it is seen to occur due to the maturities are seen to tend to be less than one year; and at such, the buyer/broker rates at which they can be bought or sold have little effect on prices.

5 0
2 years ago
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