Answer:
O A. A factory in Vietnam can produce more shoes than other
countries.
Explanation:
Absolute advantage is the capability of a commercial entity to produce goods using fewer resources compared to rivals. Using the same inputs, an entity with an absolute advantage produces a larger output compared to competitors. It means the firm has a lower marginal cost of production. Therefore, its products will have the lowest prices in the market.
The factory in Vietnam has an absolute advantage in producing shoes. It is using fewer resources than rivals to manufacture shoes, that why it is producing a higher quantity.
Answer:
Perceived quality
Explanation:
Perceive quality can be defined as the perception of a customer about the greater quality of a product as against other alternatives of the product in the market and its purpose of production.
Simply put, perceived quality is defined as the superiority of a product by a customer in comparison with other alternatives in the market.
This perceived quality ensures that a product can be highly priced since it has the edge over other alternatives and as such customers will still pay to have it regardless of the price.
From the above question, DBM beverages as a result of perceived quality is able to charge a premium price for its products because its products are certified to have a greater quality compared to its alternatives.
Cheers.
Answer:
The answer is: Yes, the student is right.
Explanation:
Some industries, especially agriculture, work on some unique ways due to their complexity. For instance, the government sets the price floor and the price ceiling for the main crops produced in the country. In order to do this, the government owns and manages huge warehouses and silos.
When the production of crops is higher than usual, the price of that crop will tend to drop because of excessive supply. The government then buys the crop to put a price floor and takes the overstock to its warehouses. That enables the government to control the market so that farmers get a "fair price" for their crops. If the government didn´t do anything, farmers would lose a lot of money and their customers (agricultural corporations) would probably overstock. That at the same time would cause further problems in the future due to lower future sales because the agricultural corporations companies are overstocked.
When farmers have a bad year due to drought or flooding, their production levels will fall, so the price of the crops would rise due to excessive demand. Then the government sells the crops it had stored previously in its warehouses to put a price ceiling. If the government didn´t do this then a lot of poor people would not be able to buy enough quantities of food.
Answer: $49.87
Explanation:
Based on the information given,
D1 = $4 × (100% + 21%) = $4 × 1.21 = $4.84
D2 = $4.84 × 1.21 = $5.8564
Value after year 2 will be:
= (D2 × Growth rate) / (Discount rate -Growth rate)
= ($5.8564 × 1.04) / (0.14 - 0.04)
= $6.09/0.1
= $60.9
Then, the current share price will be:
= 4.84/1.14 + 5.8564/1.14² + 60.9/1.14³
= 4.25 + 4.51 + 41.11
= $49.87