Answer:
Sabrina’s Soccer has a comparative advantage over Stan’s Sporting Goods because Sabrina’s Soccer has a lower opportunity cost.
Answer:
The government policy should have reduced beer consumption by 0.6 or 60%
Explanation:
Mid point formula calculates the ratio of mid point of change in demand and change in price to their average value. Then these changes are used in the calculations of elasticity of demand.
According to given data:
Elasticity of demand = 0.9
Midpoint of price = (20-10) / [(20+10)/2] = 10 / 15 = 0.6667
Elasticity of Demand = Midpoint of demand / Midpoint of price
0.9 = Midpoint of demand / 0.6667
Midpoint of price = 0.9 x 0.6667 = 0.6
Change in demand is should reduce the consumption by 0.6 or 60%.
Answer:
Financial leverage
Explanation:
Financial leverage is defined as the use of borrowed funds to perform a business activity or investment that is expected to have higher returns than the cost of borrowing the money (interest).
When a company is looking for funds for its activities there are 3 options they can use: equity, debt, or lease.
Use of equity is the only option where no extra cost is incurred for use of funds.
When using debt or lease cost of use is incurred. The business will need to engage in an activity that will give it revenue above cost of debt.
This practice is called use of financial leverage.
Answer:
2. Infrastructure
Explanation:
Infraestructure is the collection of physical facilities that a business needs to perform an economic activity in a particular enviroment.
The needs described in the question are infraestructure needs because they refer to physical facilities such as telecommunications infraestructure, transporation means, power (electricity) facilities.
The availability of technically skilled talent is not a physical asset, but it is human capital that is needed to build the infraestructure.
GDP stands for gross domestic product. The GDP allows economist to measure the market value in terms of money. They are measuring the final good or service that is being offered to a customer over any given time.
Since the first bag of flour is being sold to a bakery to make bread from and sell for $4.00 the GDP of this item is $4.00 because that is the cost a customer is paying.
The second bag of flour is sold to a customer for $2.00 in a grocery store and is the final cost a they are paying.
In this scenario, the GDP for the two products being sold to a customer is $6.00.
