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Advocard [28]
3 years ago
15

Candonia has a comparative advantage in the production of , while lamponia has a comparative advantage in the production of . Su

ppose that candonia and lamponia specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of million pounds of sugar and million pounds of lemons.

Business
1 answer:
Ksju [112]3 years ago
8 0

Answer:

Candonia has a comparative advantage in the production of <u>LEMONS</u>, while Lamponia has a comparative advantage in the production of <u>COFFEE</u>. Suppose that Candonia and Lamponia specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of <u>36</u> million pounds of coffee and <u>36</u> million pounds of lemons.

Explanation:

Since a lot of information was missing, I looked it up and found the attached graphs. The graphs referred to production of coffee and lemons, but I guess they are similar questions.

For every pound of lemons that Candonia produces, it will not be able to produce ¹/₂ pounds of coffee (opportunity cost of producing lemons instead of coffee).

For every pound of coffee that Lamponia produces, it will not be able to produce 1¹/₂ pounds of lemons (opportunity cost of producing coffee instead of lemons).

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uysha [10]

Answer:

Should Marston Manufacturing Company accept or reject the project?

Marston C Company should reject the project because its expected return is lower than Division H's cost of capital.

Since the divisions' risk is so different, and probably their projects are also very different, the company should use different costs of capital to accept of reject the projects based on each division's cost of capital.

Imagine another situation where Division L is evaluating a project that yields 10%. If they used the company's WACC, then they should reject the project, but if they used the division's cost of capital, then they should accept the project (in this case I would recommend accepting it).

Explanation:

Division H's risk = 14%

Division L's risk = 8%

WACC = 11%

3 0
2 years ago
The real interest rate tells you Question 31 options: how fast the number of dollars in your bank account rises over time. how f
Elan Coil [88]

The real interest rate tells you how fast the purchasing power of your bank account rises over time.

<h3>What is meant by the real interest rate?</h3>
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  • In the previous illustration, the lender made $8 on the $100 loan, or 8%.

<h3>What is real and nominal interest rate?</h3>
  • The real rate of a bond or loan is determined by adjusting a real interest rate to account for the impacts of inflation.
  • The interest rate before accounting for inflation is referred to as a nominal interest rate.

<h3>Why real interest rate is important?</h3>
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Learn more about real interest rate here:

brainly.com/question/6106690

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5 0
1 year ago
Read the sentence.
kow [346]

Answer:I think its 4

Explanation:

4 0
3 years ago
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On January 1, 2021, Anne Teak Furniture issued $100,000 of 10% bonds, dated January 1. Interest is payable semiannually on June
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Answer: $86,235

Explanation:

Use Excel or a financial calculator to calculate the bond price.

As the interest is payable semiannually, the relevant variables are:

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6 0
2 years ago
An investor owns 60 shares of common stock of a company issuing new shares in a rights offering. The stock trades at $12 per sha
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Answer:

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= 7 shares

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Therefore the same would be considered relevant

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3 years ago
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