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4 years ago

Which of the following statements accurately brings out the difference between economies of scale and learning effects?

Business

1 answer:

Andre45 [30]4 years ago

5 0

Answer:

Learning effects occur over time, whereas economies of scale are captured at one point in time when output is increased.

Explanation:

Learning effect is defined as as the process by which education results in increased productivity and in turn higher wages. This process takes time because most specialised skills need to be learnt in a formal institution over time.

Economies of scale is defines as cost reduction that a company experiences when there is an increase in production. Fixed cost realised can be spread over a larger number of produced units. Economies of scale is captured at one point in time when output is increased.

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Give examples of three cash crops that were grown in latin america and explain why they were cash crops.

fgiga [73]

<span>Coffee/ sugar cane / bananas can grow on a small farm, lower startup costs and risks. Countries clear cut natural forests and wildlife to make room for these crops. without export, they cannot sustain the country.</span>

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3 years ago

Addison company will issue a zero-coupon bond this coming month. The projected yield for the bond is 7%. If the par value of the

horsena [70]

Answer:

If the bond is zero coupon then there only be one lump sum payment at the end of the bond period and we will have to discount is back using the yield of the bond to find its present value or price. Because the convention is semi annual we will divide interest by 2 to find the semi annual interest rate and to number of periods we will multiply years by 2 because of semi annual convention.

Yield= 7/2= 3.5%

a. the maturity is 20 years

We have to discount 1,000 20 years back which means 40 periods back as 20*2= 40

1,000/1.035^40=252.5725

The present value of a zero coupon $1000 bond will be $252.5725 when the yield is 7% and maturity is 20 years.

b. the maturity is 30 years

We have to discount 1,000 30 years back which means 60 periods back as 30*2= 60

1000/1.035^60=126.93

The present value of a zero coupon $1000 bond will be 126.93 when the yield is 7% and maturity is 30 years.

c. the maturity is 50 years

We have to discount 1,000 50 years back which means 100 periods back as 50*2= 100

1000/1.035^100= 32.06

The present value of a zero coupon $1000 bond will be $32.06 when the yield is 7% and maturity is 50 years.

d. the maturity is 100 years

We have to discount 1,000 100 years back which means 200 periods back as 50*2= 200

1000/1.035^200= 1.02

The present value of a zero coupon $1000 bond will be $1.02 when the yield is 7% and maturity is 100 years.

Explanation:

3 0

3 years ago

Domestic producers experience limited import competition when a VER is in place. As a result, these producers make extra profit

GuDViN [60]

Answer:

Quota rent

Explanation:

When voluntary export restraints (VER) are set up and / or import quotas are enforced, the extra profit that domestic producers make because the supply is artificially limited is called quota rent. Quota rents are a type of economic inefficiency since they produce more losses than benefits. Society as a whole generally losses while a group of favored companies make huge profits.

For example, sugar imports are limited in the US, so domestic sugar producers are able to sell sugar at much higher prices than regular international prices. That artificial extra profit earned by sugar companies in the US can be classified as quota rent.

8 0

3 years ago

When somebody buys an insurance policy, that person is seeking to transfer risk away from herself and pass it on to the insuranc

Sonja [21]

Exactly, when someone buys an insurance policy that person is making sure that whatever happens to him/her, there is the policy to compensate for something that will be lost. He/she is transferring the risk away and pass it on to the insurance company for safekeeping.

3 0

3 years ago

Rhea's company sets specific goals for product features and reliability, offers incentives for achieving goals, and regularly so

adell [148]

Answer:

Total quality management.

Explanation:

Since Rhea's company sets specific goals for product features and reliability, offers incentives for achieving goals, and regularly solicits employee feedback on the causes of customer issues. These activities are part of a total quality management system.

A total quality management (TQM) can be defined as a management tool used to attain customer's satisfaction and improved productivity leading to long-term success in the business. The starting point or first step of the total quality management (TQM) is customer focus.

<em>Hence, in order to achieve a long-term success in customer satisfaction, organizations should use the total quality management approach by involving all of its employees with high standards and work ethics</em>.

4 0

3 years ago