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Gre4nikov [31]
3 years ago
6

Suppose Russia produces only trucks and cars. The resources that are used in the production of these two goods are not specializ

ed—that is, the same set of resources is equally useful in producing both cars and trucks.The shape of Russia's production possibilities frontier (PPF) should reflect the fact that as Russia produces more cars and fewer trucks, the opportunity cost of producing each additional car _______________-
Business
1 answer:
seraphim [82]3 years ago
8 0

Answer:

Remains constant

Explanation:

Since the same set of resources are useful in producing both cars and trucks, it shows that resources are not specialized hence Russia has a straight line PPC. A straight line (linear) PPC connotes constant returns to scale. In this case, resources are mobile and can easily be reallocated and redirected from the production  of one good to another thus, opportunity cost is constant and so is the marginal rate of transformation (MRT). The MRT is the number of units or amount of a good that must be foregone in order to attain one unit of another.  If Russia decides to produce more cars and fewer trucks, the resources deployed in producing more cars would be well suited as the resources already used in car production. The opportunity cost in producing each additional unit of car remains constant as more cars are produced.

The slope of a linear PPC determines the marginal rate of transformation; that is, a flatter slope would mean producing more cars requires trading-off fewer trucks while a steeper slope would mean that producing more cars requires trading-off more trucks.

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National Home Rentals has a beta of 1.06, a stock price of $17, and recently paid an annual dividend of $.92 a share. The divide
ANEK [815]

Answer:

9.6845%

Explanation:

Market risk premium = Market return - Risk free rate

                             7.3 = 11.2 - Risk free rate

Risk free rate = 3.9%

(1) Use CAPM:

Cost of equity = Risk free rate + Beta × Market risk premium

                        = 3.9% + 1.06(7.3)

                        = 11.638%

(2) Use DDM :

Stock price = [Latest dividend × (1 + dividend growth rate)] ÷ (Cost of equity-dividend growth rate)

$17 = [0.92 (1 + 0.022)] ÷ (Cost of equity - 0.022)

Cost of equity = 7.731%

Cost of equity = average value from using DDM and CAPM

Cost of equity = 0.5 (7.731 + 11.638)

                        = 9.6845%

4 0
3 years ago
The theory of purchasing power parity assumes that.
Maurinko [17]

PPP is a method of comparing the absolute purchasing power of currencies and, to some extent, the living standards of people in different countries.

<h3 /><h3>What is purchasing power parity?</h3>

Purchasing power parity (PPP) is a method of comparing the absolute purchasing power of currencies and, to some extent, the living standards of people in different countries.

It uses the prices of specific goods to compare the absolute purchasing power of currencies and, to some extent, the living standards of their people.

Therefore the above statement explains the purchasing power parity.

Learn more about purchasing power parity here:

brainly.com/question/2286004

#SPJ1

5 0
2 years ago
When would your credit card company charge you an overlimit fee?
Anna71 [15]
D) when you charge more than your current credit limit
Why: because my sister has done it and I did that question in my school
Hope this helps good luck!!
5 0
2 years ago
A firm incurs $35,000,000 of actual OH costs. It has a PDOH rate of $450 per machine hour and 100,000 machine hours were actuall
ella [17]

Answer:

c.  Debit: Overhead Control $10,000,000  

Credit: Cost of Goods Sold $10,000,000

Explanation:

The journal entry to close the overhead account is presented below:

Overhead Control A/c Dr $10,000,000

       To Cost of Goods Sold A/c  $10,000,000

(Being the overhead account is closed)

The computation is shown below:

= Applied overhead - actual overhead

where,

Applied overhead equal to

= $450 × 100,000 machine hours

= $45,000,000

And, the actual overhead is $35,000,000

So, the amount would be

= $45,000,000 - $35,000,000

= $10,000,000

Since the applied overhead is greater than the actual overhead, so we debited the overhead control account and credited the cost of goods sold account

5 0
3 years ago
According to CEO Heidi Ganahl, Camp Bow Wow requires a strong and consistent corporate culture to keep all local franchise owner
geniusboy [140]

Answer:

The correct answer is letter "A": are inflexible and incapable of adapting to environmental change.

Explanation:

Strong consistent cultures are characterized by having endured during long periods of history. Their success in enduring relies on certain strict behaviors and rules adopted by their followers. At the same time, one of the features of these cultures is that they are reluctant to change or to adopt new trends to their way of living.

4 0
3 years ago
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