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Brums [2.3K]
3 years ago
9

Assume that Germany and China can produce beer and cloth. If the MPLc/MPLb for Germany is 2/5 and the MPLc/MPLb for China is 1,

then Germany should: _______
Business
1 answer:
elena55 [62]3 years ago
6 0

Answer: c. specialize in producing beer and export beer.

Explanation:

As per the Theory of Competitive Advantage posited by David Ricardo, a country should specialize in the good that it has a competitive advantage in. A country has a competitive advantage if it incurs a less opportunity cost in producing the good.

Opportunity cost of producing beer for Germany = MPLc/MPLb = 2/5

Opportunity cost of producing beer for China = MPLc/MPLb = 1

Germany has a lower cost of producing beer so they should specialize in this and export it.

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Godfrey Corporation holds, as a long-term investment available-for-sale securities costing $69,000. At December 31, 2017, the fa
kodGreya [7K]

Answer:

Godfrey Corporation

GOLDFREY CORPORATION

Balance Sheet (Partial)

December 31, 2017

Noncurrent assets:

Investments:

Investment In Stock, at fair value  $64,100

Stockholders' Equity:

Common stock

Retained earnings

Less :

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Explanation:

a) Data and Calculations:

Long-term investment available for sale:

Cost =               $69,000

Fair value             64,100

Unrealized loss  $4,900

b) The correct entry would have been to reduce the net income by the unrealized loss.  However, for simplicity, this is showed as a reduction of the Retained Earnings in the balance sheet.

5 0
3 years ago
A group of people who holds a direct stake in the firm is known asa.primary social stakeholders.b.secondary social stakeholders.
cestrela7 [59]

Answer:

A. Primary Social Stakeholders

Explanation:

Primary social stakeholders are people directly benefiting from or affected by a particular business activity, which can be distribution of a product or a change to a service agreement, this people have a direct stake in the firm i.e. customers, employees, stockholders, creditors, suppliers, or anyone else with a financial interest in the product or situation of the firm.

7 0
3 years ago
Read 2 more answers
George Company has a relevant range of​ 150,000 units to​ 400,000 units. The company has total fixed costs of​ $527,000. Total f
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Answer: $0.54

Explanation:

Total cost = Fixed cost + Variable cost

$622,500 = $527,000 + Variable cost

Variable cost = $622,500 - $527,000

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Variable cost per unit will be calculated as the variable cost divided by the production unit. This will be:

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The variable cost per units is $0.54.

8 0
3 years ago
What type of promise to pay does a promissory note represent?
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3 0
2 years ago
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Lorraine works for a company that does not pay very well. She relies heavily on extra paychecks that her company gives out a cou
Nataliya [291]

Answer: Bonus pay plan of individual-level performance-based pay

Explanation:

In this scenario, an extrinsic reward used here is the bonus pay plan. An extrinsic reward simply means a reward that is being given to the employee of a particular company after a particular thing has been achieved.

Here, a bonus pay plan of individual-level performance-based pay is being used. A bonus is given to the employee for meeting a particular requirements. Bonus are calculated base on either the percentage of ones wages or salaries or by using a flat rate.

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