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sergiy2304 [10]
3 years ago
6

Jessica can produce 2 boats in a day or 100 umbrellas in a day. Paul can produce 3 boats in a day or 120 umbrellas in a day. Thi

s means that for every boat that Jessica produces, her opportunity cost is 50 umbrellas. For every boat Paul produces, his opportunity cost is 40 umbrellas. What would you illustrates the idea of comparative advantage?
Business
1 answer:
telo118 [61]3 years ago
3 0

Answer: B. Paul is relatively better at producing boats because he gives up fewer umbrellas per boat.

Explanation:

Comparative advantage is a notion introduced by famous economist, David Ricardo. It argues that entities should produce the goods that they have a lower opportunity cost in producing as this would prove they are better at producing said goods because they are more efficient.

In this scenario, Paul most definitely has a comparative advantage over Jessica in the production of boats because he has a lower opportunity cost of 40 umbrellas when he does so. He is therefore more efficient at it than Jessica.

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The records of Pippins, Inc., included the following information: Net sales $ 1,000,000 Gross margin 475,000 Interest expense 50
Lelu [443]

Answer:

Times interest earned (TIE) = 7.4 times

Explanation:

The times interest earned (TIE) ratio is a measure used to analyze the company's ability to meet its debt obligations on the basis of its current income level. The TIE ratio is calculated as follows,

Times Interest Earned (TIE)  =  EBIT / Total Interest expense

Where,

  • EBIT is the earnings of the company before interest and tax

To calculate TIE, we first need to determine the EBIT. EBIT can be calculated by backward working. Thus, EBIT is:

EBIT = Net income + tax + interest expense

EBIT = 240000 + 80000 + 50000

EBIT = $370000

Times interest earned (TIE) = 370000 / 50000

Times interest earned (TIE) = 7.4 times

6 0
3 years ago
You are about to leave your shift as a security guard in a retail store, when you notice someone outside tapping on the store wi
Ahat [919]
Since the store is already close-- there's no point of having the employee to come in because as a security guard, it is best to protect the store and having to protect it in a way that a person shouldn't be let in when it is already closed even if the person looks like someone who is working in the store. If the employee has some excuses as to why he or she wants to come in, it best to respond in a way that he or she should come back when the store opens or during his or her shift.
3 0
3 years ago
Discuss decision making under conditions of uncertainty, specifically using expected monetary value
IceJOKER [234]

Answer with Explanation:

The decision making under the conditions of uncertainty:

Uncertainty is an unquantifiable outcome of a decision that can not be mathematically modeled whereas risk is a quantifiable outcome of a decision that can be mathematically modeled.

The expected value method helps in decision making related to uncertainty are making prudent estimates of cash flow by using expected value.

Expected value considers every outcome under uncertainty and computes all of the expected value for each outcome. The outcome that gives highest expected value is said to be best case and likewise the outcome that gives lowest expected value is said to be worst case.

Suppose that two projects gives the same expected value, then the decision will be based on the degree of uncertainty which means the project that has lowest uncertainty of returns will be our choice.

The deviation of the expected value from required return on a project can be measured as a Degree of uncertainty that helps in understanding to what extent the return will be not as per the expectation. The Precise Measurement of uncertainty can be calculated by inclusion of standard deviation to estimate expected value of the decision taken.

The expected money value is the monetary value that a particular decision will generate. In expected monetary value the decision is based on the weighted average of best case and worst case. The value derived is average thus the standard deviation would be very low which means that the calculation was precise. Decision trees are used in precise measurement of cash flow related to each expected outcome and deriving a weighted average value.

5 0
3 years ago
Assume Julian has a choice between two deposit accounts. Account A has an annual percentage rate of 7.55 percent but with intere
Alex Ar [27]

Answer:

The correct answer is letter "A": Account A.

Explanation:

Compound interest is the interest an investor earns on the original investment plus all the interest earned on the interest that has accumulated over time. It is also called <em>interested on interested</em>. The frequency of compounding could be scheduled from daily to annually. The more frequent the compound interest is set, the most beneficial it is for the investor.

In that sense, account A will provide Julian with the highest annual return since it gives him a compound interest on a monthly basis v. annually with account B.

6 0
3 years ago
Which of these measures is (are) frequently used to rate suppliers when using an integrated supplier scorecard?
nignag [31]
When evaluating a supplier using the integrated supplier scorecard, most are reevaluated on quality of their products, cost of the product, how quickly the items are able to be deviled and the flexibility the supplier has when the organization needs supplies. The scorecards allow the company to make sure they are doing and receiving the best items from their suppliers on each different level. 
4 0
3 years ago
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