Answer:
Ahmed must bake 48 Chocolate Decadence pies and 7 Mint Breezes pies in order to get the maximum possible profit = $131.91
Explanation:
let x = chocolate decadence
let y = mint breezes
maximize revenue equation = 2.56x + 1.29y
the constraints are:
7x + 8y ≤ 392
x ≥ 6
x ≤ 48
y ≥ 3
y ≤ 42
using solver, profits are maximized when 48x + 7y = $131.91
If Austin can produce potato chips at a lower opportunity cost than William, then Austin has a comparative advantage in the production of potato chips.
Comparative advantage refers to a situation in which an individual, business or country can produce a good or service at a lower opportunity cost than another producers or businesses.
In production a lower opportunity cost creates a comparative advantage. So here in this situation a comparative advantage in one good implies a comparative disadvantage in another.
Hence, comparative advantage is the ability of a producer to produce a good or service for a lower opportunity cost than its competitor.
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Answer:
France having a comparative advantage over Germany in ships.
Explanation:
Comparative advantage is defined as the ability of a country to produce goods and services at a lower opportunity cost compared to other countries that produce a particular good. For example of country A produces cars at $300 cost, whole country B produces the Se car at cost of $1000 the country A has comparative advantage and should focus on producing cars.
In the scenario given Germany enjoys a comparative advantage over France in autos relative to ships.
This implies that France has a greater comparative advantage in ship production than Germany.
Answer:
C. Best use resources to maximize satisfaction of economic wants
Explanation:
Economics is a social science that studies human behaviour in relation to ends and scarce means resulting in alternative uses. This definition by Lord Robbins deals with the basic concept of economics.
Human wants are unlimited however, the resources available to satisfy these wants are limited hence choices have to be made in other of importance for the allotment of the limited resources in satisfying the unlimited wants resulting in scale of preference and opportunity cost.
Answer:
Option C $10,000
Explanation:
Taxable income is $8000 and the tax allowable depreciation (MACRS) is $3000. To arrive at accounting income we have to deduct Tax allowable depreciation from the taxable income and add the accounting depreciation which is $1000.
This implies:
Accounting profit = Taxable Income + Tax allowable depreciation - Tax disallowed expense + Tax disallowed income
By putting values we have:
Accounting profit = $8000 + $3000 - $1000 = $10,000
