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zepelin [54]
2 years ago
13

I am willing to take AP classes if.can someone help me out of explaining please​

Business
1 answer:
PIT_PIT [208]2 years ago
5 0
I am willing to take AP classes if the classes will continue to help my knowledge grow and provide new learning experiences.
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Two firms with identical capital intensity ratios are generating the same amount of sales. However, Firm A is operating at full
Gemiola [76]

Answer:

True

Explanation:

Firm A is operating at full capacity, if its sales keep increasing, then t will need to invest to expand its production capacity. Since firm B is operating below full capacity level, if its sales keep increasing it will have some spare production capacity it can use before operating at full capacity.

Therefore firm A will need to invest in an expansion of its production capacity while firm B can keep operating without new investments.

7 0
3 years ago
What are Financial Statements??​
kiruha [24]

Answer:

Financial statements are formal records of the financial activities and position of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form which is easy to understand.

Explanation:

Hope this helps

7 0
2 years ago
Read 2 more answers
Assume the following information:
omeli [17]

Answer:

Total product cost= $181,000

Explanation:

<u>The product cost is the sum of the direct material, direct labor, and manufacturing overhead:</u>

Direct materials $ 70,000

Direct labor $ 37,000

Variable manufacturing overhead $ 12,000

Fixed manufacturing overhead $ 25,000

Total manufacturing overhead $ 37,000

Total product cost= $181,000

7 0
3 years ago
2) Economic Growth: Use the PPF from above to illustrate the effects of saving and investment upon national GDP. Use a PPF to sh
Inessa [10]

Answer and Explanation:

Economic Growth can be defined as an increment in production capacity of an economy using all its available resources. The PPF illustrates the largest possible quantity of goods and services a nation can produce base on its available resources. An outward shift in the economy’s production possibility frontier (PPF) depicts  a raise in productive capacity of an economy.  An outward shift implies that an economy has capacity to  increase its production outputs. This can be as a result of   the economy employing new technology, allowing specialization, increasing its labour force, using new production approaches etc. Likewise, an inward shifting PPF implies an economy has witness a loss or exhaustion of some of its scarce resources and it will culminate into reduction in an economy’s productive potential.

Effects of saving and investment upon national GDP

level of savings direct related to the level of investment, investment feeds on available finance from saving. If more people save, the banks will be able  to lend more to firms to support their investments.

low savings and investment implies a PPF inward shift. low savings  in economy implies that the economy is opting for short-term consumption over long-term investment, and this will lead to future undue pressure on available infrastructures ad resources.

spending  on consumer goods vs capital goods effect on the economy

In the short run, the economy must prefer using available resources to produce capital rather than consumer goods. Standards of living will be affected, as private consumption will have access to fewer resources. However, in the longer run, the raised production of capital goods will boost  the production of more consumer goods ad therefore standards of living will experience more increase than they would have witness if the economy had spent most of its income on consumer goods.

6 0
3 years ago
Suppose that the spot price of the euro is currently $1.30. The 1-year futures price is $1.35. Is the interest rate higher in th
valkas [14]

Answer:

The interest rate is higher in the US.

Explanation:

The forward price is calculated using the following formula,

F= S ( 1+Rd / 1+Rf)^t

where,

  • F = Forward rate
  • S = Spot rate
  • Rd = Nominal interest rate in domestic market
  • Rf = Nominal interest rate in foreign market
  • t = time in years

We consider that the domestic market is the US and the domestic currency is the USD. Thus, it is a direct quote where 1 EUR = 1.3 USD

The forward price ER is more than the Sport ER only when the interest rate in domestic market is more than the interest rate in foreign market and as a result, the value of domestic currency against a foreign currency in the forward market depreciates.

We can see this by the following example,

Say Spot rate is $1.3 per 1 EUR and the interest rate in US is 10% while that in Euro zone is 5%. When we calculate the forward ER we will see that 1 EUR will buy us more USD in forward (more than 1.3 USD)

F= 1.3 * (1.1 / 1.05)^1   => $1.362 PER 1EUR

3 0
3 years ago
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