Answer: (B.) <u><em>If the maximum that a consumer is willing and able to pay is greater than the minimum price the producer is willing and able to accept for a good.</em></u>
Explanation:
A producer will only sell goods and services if the consumer is willing to pay as much as the asking price. i.e. The price that the producer is asking. For this to happen the consumer's willingness to pay must be greater than the minimum price.
Therefore , the trade will take place if <u><em>the maximum that a consumer is willing and able to pay is greater than the minimum price the producer is willing and able to accept for a good.</em></u>
It’s Levi because it’s clearly written that Levi is a beginner. Hope that works!
The crossover point is that production quantity where total costs for one process equal total costs for another process. Hence, option D is correct.
<h3>What is crossover point?</h3>
Financial independence is secured when investment income exceeds regular income. In financial jargon, this is known as the "cross over point."
When the production expenses for one product are the same as those for another product, there is an added benefit to selling any product because the cost is the same and the income will be higher from each unit, independent of the number of units sold.
Thus, option D is correct.
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All options are missing firm the question-
a. variable costs of one process equal the variable costs of another process.
b. fixed costs of a process are equal to its variable costs.
c. total costs equal total revenues for a process.
d. total costs for one process equal total costs for another process.
e. the process no longer loses money.
Answer:
Ricardo’s Theory of Comparative Advantage
Explanation:
Comparative advantage is the term used to define the ability of an individual, firm or country to produce a particular good or service at a lower opportunity cost than that if it’s competitors or trade partners. Opportunity cost is the benefit lost from the second best alternative.
When a country can produce a product more efficiently (i.e maximum output using minimum resources) than that of its trade partners, it is known as that it has absolute advantage in that product. India tends to have absolute advantage in both business processes outsourcing as well as producing agricultural commodities as it is mentioned that it can produce both of these more efficiently than the United States.
However, although it has absolute advantage in both, it is still less efficient in producing agricultural commodities when compared to business process outsourcing. In other words, if it attempts to produce agricultural commodities in-house, the benefit lost from the second best alternative: business process outsourcing is high. The opportunity cost is higher when it produces agricultural commodities than it is when it does business process outsourcing. Hence, due to the law of comparative advantage, it chooses to specialize in business process outsourcing and imports agricultural commodities.
Answer:
Total period cost under variable costing $60,000
Explanation:
The computation of the total period cost under variable costing is shown below:
Variable selling and administrative expenses (880 units × $15) $13,200
Add: Fixed selling and administrative expenses $21,120
Add: Fixed manufacturing overhead $25,680
Total period cost under variable costing $60,000
