1.9 billion servings world wide per day
Answer:
Spain for the first part and Austria for the second part.
Explanation:
The solution to the question is to determine which of the countries have a comparative advantage in producing stained glass among the two countries.
Comparative advantage represents the ability of an economy or country to produce a good or render a service at opportunity costs lower than other countries or fellow trade partners. Ability to produce at lower opportunity costs simply means that country or economy will produce the good at a lower cost and realise stronger margins in terms of sales and profit.
<u>Spain's opportunity cost of producing a pane of stained glass is 5 bushels of rye</u>
<u>While Austria's opportunity cost of producing the same pane of stained glass is 10 bushels of rye.</u>
Therefore, Spain has a lower opportunity cost and has comparative advantage over Austria in producing stained glass.
Also, Austria has a comparative advantage over Spain in the production of rye.
Answer:
Captive pricing
Explanation:
Captive pricing is the pricing of products that have both a "core product" and a number of "accessory products.". In the question, when she purchase a dispenser(core product) she gets two liquid soap(accessory product) for free, so the pricing strategy to engage is the captive pricing.
Any inventory not yet received
Answer:
The minimum value is $196,362.95
Explanation:
Giving the following information:
Cash flow= $20,000
The number of years= 20 years
Interest rate= 8%
First, we need to calculate the future value of the cash flows. We will use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= cash flow
FV= {20,000*[(1.08^20)-1]} /0.08
FV= $915,239.29
Now, we can calculate the present value. The present value is the minimum value yo accept.
PV= FV/(1+i)^n
PV= 915,239.29/ 1.08^20
PV= $196,362.95
