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Lynna [10]
3 years ago
7

Consider the following Specific Factors model. Suppose two countries, Home and Foreign, produce two goods, timber and television

s. Assume that land is specific to timber, capital is specific to televisions, and labor is free to move between the two industries. When the Home country moves into doing free trade with the Foreign country, the Home country exports timber. 16 points total, 2 points each.
For each statement below, determine whether it is true or false, and then briefly explain why?

a. The Home country produces only timber under free trade.
b. Going from closed economy to free trade, the opportunity cost of TV increases in the.
c. Labor employment increases for the TV industry in Home.
d. The workers’ purchasing power for TV increases in the Home country.
e. Capital owners are better off under free trade in the Home country.
f. After free trade, the rental rate for land increases relative to the price of TV in the Home country.
g. The marginal product of labor for the timber industry increases under free trade in the Home country.
Business
1 answer:
jok3333 [9.3K]3 years ago
7 0

Answer:

a. True

b. True

c. True

d. False

e. True

f. False

g. False

Explanation:

There are two countries which are about to enter into the free trade. Under the free trade circumstances the Home country will produce timber but it does not completely specializes in producing the timber. The labor is mobile factor which can move in the free trade therefore they will move towards their employability in the TV industry.

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dlinn [17]

Answer:

187,500 units.

Explanation:

Fixed cost= $750,000

Variable cost= $2

Price= $6

To calculate the break-even quantity, we use the formula

Break even= Fixed cost ÷ (Price - Variable cost)

Let's input the values of each

$750,000/($6 - $2)

= $750, 000/ $4

= 187,500 units.

Therefore the break even is 187,500 units.

7 0
3 years ago
First movers are? a. firms that take an initial competitive action. b. firms that are first to exit a declining indus
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First movers are firms that take an initial competitive action.

A service or product that enters the market first and captures a competitive advantage is known as a first mover. Being the first usually allows a business to build a strong brand awareness and client loyalty before rivals enter the market. Other benefits include having more time to perfect its offering and determining the new item's selling price.

Industry's first movers are virtually always followed by rivals looking to capture market share and capitalize on their success. The market share held by the first mover is frequently maintained because it has built a strong enough client base and a large enough market share.

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8 0
1 year ago
Flannigan Company manufactures and sells a single product that sells for $600 per unit; variable costs are $318. Annual fixed co
ch4aika [34]

Answer:

See below

Explanation:

Computation of target pretax

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= (Fixed cost + Target profit) × Selling price / Contribution margin

= ($991,700 + $1,235,000) × $600 / $600 - $318

= $2,226,700 × $600 / $282

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5 0
3 years ago
Your classmates are planning to go to Miami for spring break, and you are undecided about whether you should go with them. The r
MaRussiya [10]

Answer:

You should use the discount coupon to pay for the Miami trip. Not considering the personal motivations for the trip, the coupon is worth $500. The cost of flying is $600, so you will only pay $100 yourself. You will be spending $900 + $1000 = $1,000 in total.

The opportunity cost of using the coupon is $350 (the cost of the round trip to Atlanta). Even if you add the $350 to the $1,000 expense, the total is $1,350, less than your $1,400 maximum budget.

3 0
3 years ago
A stock has a beta of 1.15, the expected return on the market is 10.3 percent, and the risk-free rate is 3.1 percent. What must
kvv77 [185]

Answer:

The expected return on this stock is 11.38%.

Explanation:

We apply the Capital Asset Pricing Model (CAPM) to solve the problem.

Under the CAPM, we have:

Return on a stock = Risk-free rate + Beta * ( Return on Market - Risk free rate).

in which:

Risk-free rate is given at 3.1%;

Beta is given at 1.15;

Return on Market is given at 10.3%;

So:

Return on a stock = Risk-free rate + Beta * ( Return on Market - Risk free rate) = 3.1% + 1.15 * ( 10.3% - 3.1%) = 11.38%.

Thus, the answer is 11.38%.

8 0
3 years ago
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