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KatRina [158]
3 years ago
10

The production possibilities model shows an inverse relationship between the amount of one thing that can be produced and the am

ount of something else because
Business
2 answers:
Ivahew [28]3 years ago
8 0

Answer:

Explanation:

The production possibility curve is a graphical illustration and tool used for economic analysis. It shows the various combination of goods that can be produced given available resources.

The PPC looks like a bow shape and has an inverse relationship, this is because this is because to produce 1 more of product A you need tp be willing to let go of 1 unit of product B(assuming we can only manufacture 2 products) this concept is known aa Marginal Rate of Transformation.

masya89 [10]3 years ago
3 0

Answer:

The production of one good will reduce the available resources needed to produce the other good. Since resources are limited, the production or goods competes for them.

Explanation:

This concept can be best illustrated by an example:

A country produces apples and tomatoes. Its production possibilities frontier (PPF) is linear and it can produce 100 apples and 200 tomatoes.

The PPF is determined by the opportunity cost of producing either apples or tomatoes. Opportunity cost refers to the extra costs or benefits lost from choosing one activity or investment from another alternative.

In this case, the opportunity cost of producing apples instead of tomatoes = 200 / 100 = 2 tomatoes per apple produced. The opportunity cost of producing tomatoes instead of apples = 100 / 200 = 0.5 apples per tomato produced.

Resources are scarce, that is the basic premise of economics, and we must allocate of resources in the most efficient possible way in order to maximize our benefits. But no one, not even the richest person or the largest corporation can have all the money in the world, or own all the resources, or even buy an extra 10 minutes per day of time.

The concept of PPF is that you have to choose what combination of goods provides the most benefits per dollar (or per apple/tomato in this case) spent.

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Taka is considering sending a message regarding a raise but is concerned since the company is struggling financially. Taka has d
BlackZzzverrR [31]

A. Will management allow this message to be​ sent?

Answer A:

This depends upon the financial health of the company and the project for which the funds are required. If the company is raising debt finance and its financial health is not good, then it seems the management might reject the idea to raise debt finance because the company have to pay interest on this amount borrowed. But if the company is raising equity finance then greater chances exist that the management will encourage this move.

B. Will anything change as a result of the​ message?

Answer B:

Ofcourse, if the debt finance is used it would make the financial health of the company worse than before if the project for which the loan option is choosen does not performs well in the market. If the projects performs well then it will reduce the financial distress and head the company towards another investment to further reduce the gearing and increase the interest cover.

C. Is the time​ right?

Answer C:

It might be right time to borrow because after some time there might be a rare chances to borrow or raise equity because of further poor performance. It is also possible that the investment will decrease the financial gearing from its better performance, which is the need of the time. So it depends a lot on the source of finance, project profitability and time. If we use equity finance then it provides financial protection for a greater period.

D. Is the purpose acceptable to the​ organization?

Answer D:

If the company raising the finance to pay its debt then that's not the right option. The company must raise finance to invest somewhere else and earn a good share of investment in the comings year to meet the interest due and make another investments. It also depends what is the purpose of the fund raising. Usually the lenders prefer to pay to companies when companies make investments.

E. Is the purpose​ realistic?

Answer E:

If the company is making unrealistic assumptions then it is probable that the company performance in the year will be very poor. So making better forecasting is a better way to sense the risks in the market and also tells the way we must tackle these risks.

7 0
4 years ago
Which statement corresponds to this specific situation?
Illusion [34]

Answer:

<em>Employer may legally discriminate based on BFOQ</em>

Explanation:

Bona Fide Occupational Qualification BFOQ gives an employer the right to employ individuals base on sex, age, nationality, gender if they see these characteristics as bona fide occupational qualification. In doing this, the employer must be able to show that the reason for employing based on these characteristics is very vital to the production of their company, and that only these particular characteristics are necessary for the safety and efficiency of the employee. In this case, it is possible that the bona fide occupational qualification for this job is that the candidate must be or above 60 years of age.

7 0
3 years ago
4. Mrs. Derry is a retired receptionist living on a fixed income in a small apartment. Her power was recently cut-off because sh
nexus9112 [7]

Answer:

Explanation:

A retirement home organization would be the best option in this scenario to help Mrs. Derry enjoy her retirement years. These organizations provides all of the day to day help that an elderly person would need in order to live happily. This includes help with groceries, paying bills, cooking, driving, etc. Any and all tasks that the individual is not fully capable of doing anymore. These organizations also provide housing for retired individuals, making it easier to help them enjoy their retirement even more.

8 0
3 years ago
Benz corporation produces a filter that has a per unit cost of $18. the company would like a 30% markup. using cost-plus pricing
Strike441 [17]
The unit selling price of the selling price is equal to the sum of the original price and the amount that should be added for the marking-up, which is equal to 30% of the original per unit cost. This can be calculated through the equation below.
 
      per unit selling price = ($18)(1.30) = $23.4

ANSWER: $23.4
5 0
3 years ago
An investment in the Mezzogiorno will receive a subsidized loan of $12 million from the Italian government. The loan bears an in
Murrr4er [49]

Answer:

$1.92 million

Explanation:

The value of the subsidy per year = $12,000,000 x 3% = $360,000

Now we have to find the present value of the cash flows using an excel spreadsheet and the net present value function =NPV(discount rate,series of cash flows)

discount rate = 10% (market rate)

cash flows = 8 cash flows of 360,000 each

=NPV(10%,360000,360000,360000,360000,360000,360000,360000,360000) = $1,920,573 ≈ $1.92 million

6 0
4 years ago
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