1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nataly [62]
3 years ago
11

When Kim and Liam move from spending 30 minutes of each hour producing pies and 30 minutes producing cakes to specializing in th

e good in which they have a comparative​ advantage, the total gains from trade are​ ______ pies and​ ______ cakes.
A.​30; 100
B.​100; 400
C.​100; 30
D.​40; 200
Business
1 answer:
Novay_Z [31]3 years ago
8 0

Answer:

A) 30 pies and 100 cakes.

Explanation:

Kim can produce 40 pies or 400 cakes an hour. Liam can produce 100 pies or 200 cakes an hour.

Since each one will specialize in the production of the good in which they have a comparative advantage, Kim will produce cakes and Liam will produce pies.

before specialization Kim produced 20 pies and 200 cakes, while Liam produced 50 pies and 100 cakes.

So the total gains from trade are:

  • 50 pies - 20 pies = 30 pies
  • 200 cakes - 100 cakes = 100 cakes
You might be interested in
A firm wants to create a WACC of 11.2 percent. The firm's cost of equity is 16.8 percent and its pretax cost of debt is 8.7 perc
Andre45 [30]

Answer:

Debt equity ratio = 1.01

Explanation:

given data

WACC = 11.2 percent

cost of equity = 16.8 percent

pretax cost of debt = 8.7 percent

tax rate = 35 percent

to find out

What does the debt-equity ratio need to be for the firm to achieve its target WACC

solution

we get here WACC that is express as

WACC = Wd × Rd × (1-t) + We × Ke      ..................1

here Wd is weight of debit and t is tax rate and Ke is cost of equity and

Wd + We = 1

so We = 1 - Wd

put value in equation 1

WACC = Wd × Rd × (1-t) + We × Ke

11.20% = Wd × 8.70%  ×(1-35%) + (1-Wd) × 16.80%

solve and we get

Wd = 0.5025

so We will be

We = 1 - 0.5025

We = 0.4975

and

Debt equity ratio will be

Debt equity ratio = \frac{0.5025}{0.4975}

Debt equity ratio = 1.01

6 0
3 years ago
Define service level. Multiple choice question. It is the ratio between average inventory and the level of sales. It is the meas
attashe74 [19]

Answer:

It is the measure of how well the objective of meeting customer demand is met.

Explanation:

7 0
3 years ago
What are control accounts in accounting??​
Marina CMI [18]

In accounting, the controlling account is an account in the general ledger for which a corresponding subsidiary ledger has been created. The subsidiary ledger allows for tracking transactions within the controlling account in more detail.

6 0
3 years ago
Read 2 more answers
Carver Packing Company reports total contribution margin of $80,200 an pretax net income of $40,100 for the current month. In th
Helen [10]

Answer:

• Degree of operating leverage = $2

• Expected Percent change in income = 20%

Explanation:

Details provided from the question includes ;

Total contribution margin = $80,200

Pretax net income = $40,100

Expected increase in sales value = 10%

Therefore;

Degree of operating leverage

= Contribution margin ÷ Net operating income

= $80,200 ÷ $40,100

= $2

Percent change income

= Percentage increase in sales × Degree of operating leverage

= 10% × 2

= 20%

8 0
3 years ago
The Grow Your Garden seed company recently conducted a situation analysis. It decided on its marketing goals too. What is its ne
zhannawk [14.2K]

Answer:

To plan effective strategies and specific tactics to accomplish the strategic objectives

Explanation:

Since the company has conducted situational analysis and chosen its marketing goals the next logical step is to plan effective strategies and specific tactics to accomplish the strategic objectives. Both situational analysis and marketing goals are needed in order to understand who to target and what to aim for. Once a company has this, they need to plan a course of action in order to accomplish those goals as effectively as possible.

3 0
3 years ago
Other questions:
  • Suppose that college professors at public universities are unionized. if public university college professors change their minds
    15·1 answer
  • The accounts receivable turnover measures a.the number of days of accounts receivable outstanding b.the fair market value of acc
    15·1 answer
  • What are basic concepts and principles of morality.
    6·1 answer
  • Two towns, each with three members, are deciding whether to put on a fireworks display to celebrate the New Year. Fireworks cost
    5·1 answer
  • (b) Note that Schlicksup, before working at Caterpillar, was an accountant at Arthur Andersen (the auditing firm that was crimin
    11·1 answer
  • Ted is an agent for Waxwing Corporation, an airliner manufacturer, and is negotiating a sale with a representative of the U.S. g
    11·1 answer
  • Which of the following caused readership of The Boston Globe to plummet?
    6·1 answer
  • If the direct materials price variance is $500 favorable, and the direct materials quantity variance is $250 unfavorable, the jo
    15·1 answer
  • When the required return is constant and equal to the coupon rate, the price of a bond as it approaches its maturity date will?
    8·1 answer
  • Is the cap on inflows in calculating net outflows binding? is the bank in compliance with the lcr rule?
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!