Answer:
FRANCE has a comparative advantage in the production of cheese and SWEDEN has a comparative advantage in the production of oil.
- Comparative advantages result form the lowest opportunity costs. In this case, France's opportunity cos tot produce cheese is lower, while Sweden's opportunity cost of producing oil is lower.
France can gain from specialization and trade as long as it receives more than 3 BARRELS of oil for each pound of cheese it exports to Sweden. Similarly, Sweden can gain from trade as long as it receives more than 1/11 POUNDS of cheese for each barrel of oil it exports to France.
Based on your answer to the last question, which of the following terms of trade (that is, price of cheese in terms of oil) would allow both Sweden and France to gain from trade?
- a. 6 barrels of oil per pound of cheese
- c. 4 barrel of oil per pound of cheese
Answer:
D) There is no contract.
Explanation:
The main requirements for a legal contract to exist is that:
- there is something of consideration being exchanged (in this case $ and the armoire).
- there is an offer and acceptance, and all parties involved must decide freely (in this case there is only an offer, but there is no acceptance).
- all the parties involved must be capable of engaging in a contract (e.g. no minors nor mentally disabled)
- the consideration must be legal, e.g. a contract for buying drugs is not a valid contract
Answer:
Opening purchase
Explanation:
This happens when a buyer buys a stock or security with the aim of sustaining or increasing the long position in the stock market.
Buy to open informs the participant about the opening of new market rather than closing out on the old market.This remains open until an opposition trade takes place.
It is good to also note that a position can be open and close within a very short period.
Answer:
a. 464 beans
b. $464
Explanation:
a. The computation of the economic order quantity is shown below:
= 
where,
Annual demand = 200 days × 77 pounds = 15,400
And, all other items values would remain the same
Now put these values to the above formula
So, the value would equal to
= 
= 464 beans
The average inventory would equal to
= Economic order quantity ÷ 2
= 464 units ÷ 2
= 232 units
b. Holding cost = average inventory × carrying cost per unit
= 232 units × $2
= $464
