We shall Ignore cost of sugar cane at $0.36 per pound, as its going to be incurred for both processes.
Lets find the cash flow from not processing further:
42500 pounds Sugar @ $1.43 per Pound $60,775
Lets find the cash flow from Processing Further:
If 42500 pounds of raw sugar are processed further, we get 34000 pounds of refined sugar(42500/1.25)
34000 pounds of refined [email protected] $2.23 per pound $75280
Additional Processing charges for 42500 [email protected]$0.49 ($20825)
Total Cash Flow $54995
As can be observed, the organisation earns more when they sell raw sugar, Thus sugar should not be processed further.
D is the answer to your question
Answer:
Lein Theory.
Explanation:
Lien theory refers to the theory in which the buyer stops the property deed at the time of the mortgage. Also the buyer promised to pay all the payments so that the mortgage could become a lien on a property but at the same time the title would remain with the buyer but if all the payments are paid so the lien could be removed
Therefore in the given situation, it represents the lien theory
If all firms only earn a normal profit in the long run, firms will develop new products or lower-cost production methods because they can innovate and possibly earn an economic profit in the short run.
Explanation:
Competition involves constant efforts by companies and executives to do more than the loss (normal gains) of new goods or by improving ways to manufacture current products at lower prices. Therefore, if businesses can invent, they will achieve short-term economic advantage.
Economic benefit encourages entry, economic losses lead to exit and firms in a highly profitable market earn little economic income in a long-term equilibrium. In an industry where inflation does not change the costs of materials (a market with a constant cost), the long-term supply curve is a horizontal line.
Answer: c). according to the ppf, as we produce more of one product, eventually we have give up more and more of the other product.
Explanation: PPF shows all possible combination of goods that a country can produce with its limited resources. The slope of a PPF is the opportunity cost which shows the units of goods that must be sacrificed to gain more and more units of the other good. As we move down the PPF the opportunity cost increases. This means that <em>more and more units of a good must be sacrificed to gain additional units of the other good</em>.
