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3 years ago

What is adam smith's main idea about trade and economic decision making?

1 answer:

3 0

<span>Adam smith believed that the economy should be left free of interference from the state which is called a laissez faire economy. He believed that state should not decide what is required for the people which should be decided by the market. He also argued that there is an invisible hand that will regulate the economy in the absence of the state.</span>

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Akamai Technologies is a dominant player in the content delivery network (CDN) market. Akamai is not very diversified (i.e., is

vladimir2022 [97]

Answer:

The answer is: Akamai will probably lower its prices too.

Explanation:

When a company's competitors offer similar products and lower their prices, they are expecting a substitution effect to happen. This means that your customers will stop buying from you and will start buying similar substitute products from the competition at lower prices.

Akamai will probably try to avoid this from happening and the only feasible way they can do it is by also lowering their prices to match the competition's.

8 0

4 years ago

Cantor Corporation acquired a manufacturing facility on four acres of land for a lump-sum price of $9,000,000. The building incl

Naily [24]

Answer:

Initial value of building = $4,050,000

Initial value of land = $2,700,000

Initial value of equipment = $2,250,000

Explanation:

The fair value of an asset refers to a unbiased estimate of the likely market price of the asset.

The initial value of a fixed asset refers to the amount of money that spent to acquire or create the asset.

The initial value of each asset from a group of asset can be calculated using the following formula:

Initial value of an asset = Lump-sum price * (FVA / TFV) ............ (1)

Where, from the questio;

Lump-sum price = $9,000,000

FVA = Fair value of a particular asset. From the question, we have:

Building fair value = $4,500,000

Land fair value = $3,000,000

Land fair value = $2,500,000

TFV =Total fair value = Building fair value + Land fair value + Land fair value = $4,500,000 + $3,000,000 + $2,500,000 = $10,000,000

Substituting the values into equation (1), we can determine the initial value of each asset as follows:

Initial value of building = $9,000,000 * ($4,500,000 / $10,000,000) = $9,000,000 * 0.45 = $4,050,000

Initial value of land = $9,000,000 * ($3,000,000 / $10,000,000) = $9,000,000 * 0.30 = $2,700,000

Initial value of equipment = $9,000,000 * ($2,500,000 / $10,000,000) = $9,000,000 * 0.25 = $2,250,000

5 0

3 years ago

Prepare a contribution format income statement at the company's break-even point that shows the appropriate levels of sales for

fiasKO [112]

The overall contribution margin (CM) ratio for the company is 30% and Overall break-even point in dollar sales is $80,000.

<h3>Contribution margin (CM) ratio </h3>

1. Overall contribution margin ratio

Overall contribution margin ratio = Total contribution margin/Total sales

Overall contribution margin ratio= $30,000/ $100,000

Overall contribution margin ratio = 30%

2. Overall break-even point in dollar sales

Overall break-even = Total fixed expenses/ Overall contribution margin ratio

Overall contribution margin ratio= $24,000/30%

Overall contribution margin ratio= $80,000

3. Contribution format income statement

Claim-jumper Makeover Total

Original dollar sales $30,000 $70,000 $100,000

Percent of total 30% 70% 100%

Sales at break-even $24,000 $56,000 $80,000

Variable expenses:

Claim-jumper

Variable expenses= ($24,000/$30,000) × $20,000

Variable expenses= $16,000

Makeover

Variable expenses=($56,000/$70,000) × $50,000

Variable expenses= $40,000

Therefore the overall contribution margin (CM) ratio for the company is 30% and Overall break-even point in dollar sales is $80,000.

Learn more about Contribution margin (CM) ratio here:brainly.com/question/24039258

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5 0

2 years ago

Consider this mission statement: "To make the world a bright clean place by making our products a household name worldwide." Thi

S_A_V [24]

It's an example of an advocacy mission statement. An advocacy is where a person or a group of people are working for a certain cause or certain goal that would help benefit many. Often advocacy groups promote awareness about the environment, healthful living, and generally a world of positive co-existence.

6 0

3 years ago

Read 2 more answers

You and a rival are engaged in a game in which there are three possible outcomes: you win, your rival wins (you lose), or the tw

kherson [118]

Answer:

A) There is a 50% chance the game ends in a tie, 10% chance you win (and therefore a 40% chance you lose).

expected value = (50% x 20) + (10% x 50) + (40% x 0) = 10 + 5 + 0 = 15

B) There is a 50-50 chance of winning and there are no ties.

expected value = (50% x 50) + (50% x 0) + = 25 + 0 = 25

C) There is an 80% chance you lose and a 10% chance you win or tie.

expected value = (10% x 20) + (10% x 50) + (80% x 0) = 2 + 5 + 0 = 7

The expected value of an event is determined by adding up all the possible outcomes multiplied by their respective value.

6 0

3 years ago