Answer:
Equilibrium price = $6
Total quantity in the market would be > 400 units ( unchanged )
Explanation:
Applying small=country model
world price of product = $6
import quota = 400 units
The Equilibrium price in Marketopia would be $6 and the total quantity available in Marketopia would > 400 units
This is because in a small country assumption model, the total imports made by any country is insignificant to the Total quantity of the products available in the market therefore it has no effect on the price of the products even if when the imports are stopped by the country
Answer:
Results are below.
Explanation:
<u>A: To calculate the gross profit, we need to use the following formula:</u>
Gross profit= sales - cost of goods sold
Gross profit= 990,000 - 693,000
Gross profit= $297,000
B: <u>Now, the gross profit percentage:</u>
Gross profit percentage= (gross profit / sales)*100
Gross profit percentage= (297,000 / 990,000)*100
Gross profit percentage= 30%
C: F<u>inally, a net income is reported in the income statement at the moment of the sale</u>. It doesn't matter if the sale was paid or not.
Answer:
$42.5 billion
Explanation:
the expected value formula = ∑ (valueₙ x probabilityₙ)
expected value = (low value x probability of low value) + (most likely value x probability of most likely value) + (high value x probability of high value)
= ($5 billion x 20%) + ($45 billion x 70%) + ($100 billion x 10%) = $1 billion + $31.5 billion + $10 billion = $42.5 billion
Answer:
The correct answer is profit of $2.3 by selling it in Mexico.
Explanation:
According to the scenario, the computation of the given data are as follows:
In the United states Cost of shoes = $45
In Mexico, Cost of Shoes = 430 Pesos ( where $0.1100 = 1 pesos)
So, 430 Pesos = 430 × $0.1100 = $47.3
So, we can calculate the profit to sell in Mexico as follows:
Profit to sell in Mexico = Sell price in Mexico - Sell price in US
= $47.3 - $45
= $2.3
So, the arbitrage opportunity exist by buying the shoes in Pesos and selling it in Mexico, one can make a profit of $2.3 per shoes.
Answer:
Elton mayo should be the answer
