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sveticcg [70]
3 years ago
15

Which of the statements below is FALSE?

Business
1 answer:
babymother [125]3 years ago
6 0

Answer:

The answer is option A) The false statement among the options provided is:

A preemptive right is never particularly valuable to shareholders with large ownership percentages.

Explanation:

A pre-emptive right enables investors to maintain a proportional level of ownership.

The goal of every investor is to make profit but this goal could be affected if the value of shares they hold is diluted. Hence the need for preemptive rights.

Preemptive right is a protective strategy by shareholders to maintain their share value with the option to buy a proportionate amount of shares if the company wishes to issue additional shares in the future.

Therefore, it is false to say that:

"A preemptive right is never particularly valuable to shareholders with large ownership percentages".

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Consider the production possibilities frontier model for an economy that produces only two goods: barley and cars.
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Answer:

Production Possibilities Frontier

Explanation:

In a theoretical economy, the production possibilities frontier, is the curve that shows the  combination of goods produced (barley and cars) by an economy given a limited resource. Furthermore the more goods (barley) is produced, the less cars are produced. Thus, for every additional barley's produced, there's an opportunity cost of cars.

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quizlet If a country can produce more of a good or service, it has a(n) advantage. If the country can produce a good or service
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If the country can produce a good or service at a lower opportunity cost, it has a comparative advantage.

<h3>What is comparative advantage?</h3>
  • In an economic model, agents have a comparative advantage over others if they can produce that good at a lower relative opportunity cost or autarky price, i.e. at a lower relative marginal cost prior to the trade.
  • Comparative advantage describes the economic reality of trade advantages for people, firms, or nations as a result of disparities in their factor endowments or technological progress.
  • (The absolute advantage, comparing output per time (labor efficiency) or per quantity of raw material (monetary efficiency), is typically considered more intuitive but less accurate – productive trade is possible as long as the opportunity costs of manufacturing commodities vary between countries.)

Therefore, if the country can produce a good or service at a lower opportunity cost, it has a comparative advantage.

Know more about comparative advantage here:

brainly.com/question/14846093

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