A model used to illustrate the trade-offs related to splitting resources between the production of two items is called the Production Possibilities Curve (PPC).
<h3>How do economic actors calculate costs to specialize products?</h3>
The PPC is a useful tool for demonstrating the ideas of scarcity, opportunity cost, efficiency, and economic development and contraction.
Exchange possibilities that lead to consumption opportunities outside of the PPC are the consequence of production specialization based on comparative advantage rather than an absolute advantage.
In contrast to what would have been achievable domestically, trade between two agents or countries enables the countries to enjoy a higher overall output and level of consumption.
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PPCs can be used to decide who should specialize in a certain good as well as opportunity costs and comparative advantages.
A nation or individual will be able to consume at a point beyond its PPC through specialization and commerce, assuming the terms of trade are advantageous (for example, offering each agent a cheaper opportunity cost than could be accomplished without trade).
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Answer:
The financing section of the statement of cash flows will report net cash inflows of $10,500
Explanation:
The financing section of the statement of cash flows shows results of cash resulting from capital invested by owners, debt issued and repayments to capital and debt.
Cash Flow from Financing Activities
Preferred Stock Issued $19,000
Dividends Paid ($3,500)
Treasury Stock Purchased ($5,000)
Net Cash Provided by Financing Activities $10,500
Answer:
a) Reduction in ordering cost to 1/9 of it current value
Explanation:
EOQ = √(2SD/H)
- S = ordering cost = $20
- D = annual demand = 60 x 12 = 720 bags
- H = annual holding cost = $80 x 40% = $32
EOQ = √[(2 x $20 x 720) / $32] = 30
if you want to reduce inventory to 1/3 of its current value, then the order quantity should be 30 x 1/3 = 10 units per order
a) Reduction in ordering cost to 1/9 of it current value
EOQ = √[(2 x $20/9 x 720) / $32] = 10 ✓
inventory is decreased to 1/3 of current level
Answer:
C) $95 F
Explanation:
Planned cost of materials and supplies = $2,230
Actual cost of materials and supplies = $2,160
Flexible budget for November = $2,230 - $2,285 + 25 = $95 F.
It is is favorable (F) because Actual cost of materials and supplies is less than the Planned cost of materials and supplies.