Answer:
Option (b) is correct.
Explanation:
According to the law of comparative advantage, a person or a country has a comparative advantage in producing a commodity if the opportunity cost of producing that good as compared to the other commodity is lower than the other country.
For example:
There are two countries; Country A and Country B. There are two goods to be produced; Computer and bottles.
Suppose the opportunity cost of producing a computer in Country A is 4 bottles and the opportunity cost of producing a computer in Country B is 6 bottles.
Therefore, the Country A has a comparative advantage in producing computers because of the lower opportunity cost of producing it.
Answer:Woodmier journal $
1. Date
2021
Warranty expenses Dr 90,000
Warranty liability Cr. 90,000
Narration. Amount of warranty incurred for the year.
2021
Warranty liability Dr 90,000
Bank/Cash. Cr. 90,000
Narration. Payment of warranty expenditures.
2. No entry require
Explanation:
The warranty expenses since is a period of one year can be accounted for at the end of the year without requirements for provision at the beginning of the year. The actual warranty is debited to the income statement and the liability recognized as a creditor until payment.
The discontinuation of the sales of the product in 2021 will not affect the already incurred warranty liability and the account posting thereon in the following years.
<span>The graph above shows how the price of video games varies with the demand quantity. The equilibrium price is $50, and the equilibrium quantity is 200 video games.
Answer choice:
</span>A. price, quantity
Concept:
<span>Equilibrium is the point where supply and demand meet and the prices are set. Because the price is set as equilibrium.
</span>The quantity demanded is the amount of a product people are willing to buy at a certain<span> price.</span>
Answer:
The correct answer is $2,500,000,000.
Explanation:
According to the scenario, the computation of the given data are as follows:
Operating capacity = 80%
Sales = $2 billion
Fixed assets = $600,000,000
So, we can calculate the level of sales by using following formula:
Level of sales = Sales ÷ operating capacity
= $2,000,000,000 ÷ 80%
= $2,500,000,000
Answer:
This is how the market for board games would be affected in the explanation below
Explanation:
Because the manufacturers of the board game expect that the demand for their games would experience a decline, they would have to adjust their Production according to the decline. This is going to shift supply curve to the left, because of the decline in the production. Then equilibrium price would then increase as the quantity decreases because of the shift of the supply curve to the left.
