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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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Answer:

27%

Explanation:

The computation of the net profit margin is shown below;

As we know that

net profit margin = Net profit ÷ sales

where

net profit is

<u>Particulars                                                                 Amount </u>

Sales (200 customers × $12 × 350 days) $840,000

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Gross profit $525,000

Less:

Selling and admin expense -$98,510

Depreciation expense - $20,000

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Less tax at 32% -$105,672

Net income after tax $224,553

Now the net profit margin is

= $224,553 ÷ $840,000

= 27%

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A firm's value added equals 10) A) its revenue minus its wages. B) its revenue minus all of its costs. C) its revenue minus its
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In mathematically,

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Answer:

Prepare closing entries for Wildhorse Co. on December 31, 2017

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