Answer:
other countries have a comparative advantage over Guatemala in the production of coffee, and Guatemala will import coffee.
Explanation:
This question is incomplete. Please check the attached image for a complete question.
A country has comparative advantage in the production of a good or service If it produces the good or service at a lower opportunity cost when compared to its trading partners.
The price of Guatemala's coffee is higher when compared to the world price of coffee without international trade. It shows that Guatemala doesn't have a comparative advantage in the production of coffee. Guatemala should stop producing coffee and import instead. This would enable Guatemala focus more resocurces on the production of good for which it has comparative advantage.
I hope my answer helps you
This expanding panic and rising flood of withdrawals is called Bank Run.
<u>Explanation: </u>
Bank run means many customers of the bank withdraw their deposits due to the fear that the bank might become insolvent. When many customers withdraw their funds then the bank might not be able to meet the withdrawals with the available funds.
This further increases the risk of the bank to default when all the customers withdraw their deposits. This is because the banks hold only little amount as cash in hand while the rest of the bank's wealth is invested in long term assets.
Answer:
Debit Unearned Revenue, Credit Service Revenue for $9,200
Explanation:
Date Account Titles Debit Credit
Sept 1 Cash $16,100
Unearned service revenue $16,100
Dec 31 Unearned service revenue $9,200
Service Revenue $9,200
($2300 * 4 months)
Answer:
The correct answer is: more likely to experience a loss when sales are down than a company with mostly variable costs.
Explanation:
The fixed cost ratio is a simple ratio that divides fixed costs by net sales.
The profit formula is:
Profit = Sales- Total cost =(Price * Q)-(FC + VC*Q)
Where
FC=Fixed cost
VC= variable cos
t
Q=produce quantity
If sales go down, we have to pay this fixed cost even if we have no sales. So if this Fixed cost are high , is most likely we are going to experience loss
Bonds have a maturity date, are perpetual, and pay a coupon rate.
