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nikklg [1K]
4 years ago
9

(Scenario: Sugar Trade in Birdonia) In autarky, suppose that equilibrium sugar price is $100 per ton in Birdonia, a small agricu

ltural nation. Now, suppose Birdonia engages in free trade with the rest of the world. The world price of sugar is $125 per ton. What action must the government of Birdonia take to ensure that Birdonians do not import sugar at the world price of $125?
Business
1 answer:
evablogger [386]4 years ago
6 0

Answer:

The government of Birdonia should do nothing.

Explanation:

Equilibrium sugar price of $100 means that at that price($100), more people are willing to buy sugar. Also more firms are willing to supply the commodity at that price.

Hence since consumers are considered rational, they will want to go for a higher value at minimal cost. Opting for imported sugar at $125 is the least the Birdonian citizen will do.

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16) (2 marks)
musickatia [10]

Answer:

171 units

Explanation:

Break-even point = fixed cost / Divide by contribution margin per unit.

fixed costs = £12,000

Contribution margin per unit = selling price - variable cost per unit

Selling  price £88: variable cost  £18

contribution margin per unit

=  £88 -  £18

=£70

Break-even point = £12,000/£70

=171.42

=171 units

3 0
3 years ago
A company purchased an asset for $3,600,000 that will be used in a 3-year project. The asset is in the 3-year MACRS class. The d
suter [353]

Answer:

$266,760

Explanation:

According to the problem, calculation of the given data are as follows,

Purchase value =  $3,600,000

Depreciation for 1st year = 33.33%

Depreciation for 2nd year = 44.85%

Depreciation for 3rd year = 14.81%

So,  Book value = Purchase value × ( 1 - depreciation of all years)

By putting the value we get,

Book Value = $3,600,000 × ( 1 - 33.33% - 44.45% - 14.81% )

= $266,760

6 0
3 years ago
Federal express has a(n) ________________ in logistics and customer service, since these are activities it does especially well
andrezito [222]
The answer to this question is that federal express has a core competence. Core competence is the main strenghts or advantages of a business or the company in order for them to become competitive in the market. The concept of Core competency was introduced by Gary Hamel and Prahalad. Core competency is what the business or company can do to their customers and their expertise that is unique that can be valued by the customers.
8 0
3 years ago
Reagan Corp. acquired one hundred percent of Ford Inc. on January 1, 2016, at a price in excess of the subsidiary's fair value.
Artyom0805 [142]

Answer:

B. $497,000

Explanation:

           Consolidated Balance of Equipment

Excess value at the acquisition                  $110,000

($350,000-$240000)

Book value as on Dec 31 2018 of Ford      $170,000

Book value as on Dec 31 2018 of Regent  $250,000

Less: excess depreciation                          <u>-$33,000  </u> ($110,000/10*3)

Consolidated balance of equipment        <u>$497,000</u>

3 0
3 years ago
Which party signs a contract with a health insurance company and thus, owns the health insurance policy?
raketka [301]
"Policyholder" <span>signs a contract with a health insurance company and thus, owns the health insurance policy.
</span>

A policyholder refers to a person who owns and claims a protection or insurance arrangement and has the privilege to practice all benefits under the agreement of protection, aside from where limited by the privileges of an appointee. A policyholder could conceivably be the safeguarded, or the sole or one of the recipients of the policy. Likewise called policyowner.
3 0
3 years ago
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