Answer:
Candonia has a comparative advantage in the production of <u>LEMONS</u>, while Lamponia has a comparative advantage in the production of <u>COFFEE</u>. Suppose that Candonia and Lamponia specialize in the production of the goods in which each has a comparative advantage. After specialization, the two countries can produce a total of <u>36</u> million pounds of coffee and <u>36</u> million pounds of lemons.
Explanation:
Since a lot of information was missing, I looked it up and found the attached graphs. The graphs referred to production of coffee and lemons, but I guess they are similar questions.
For every pound of lemons that Candonia produces, it will not be able to produce ¹/₂ pounds of coffee (opportunity cost of producing lemons instead of coffee).
For every pound of coffee that Lamponia produces, it will not be able to produce 1¹/₂ pounds of lemons (opportunity cost of producing coffee instead of lemons).
Answer:
a. Vertical
Explanation:
The vertical acquisition means the acquisition where the company purchased one of the suppliers. Like the manufacturing company buys the product i.e. not fully developed so here for fully developed the company purchased out its supplier so this we called as a vertical acquisition
Now as per the given situation since the food markets would be purchased Meat processors so this represent the vertical acquistion
hence, the correct option is a.
Answer:
In economics, the principle of absolute advantage refers to the ability of a party (an individual, or firm, or country) to produce a greater quantity of a good, product, or service than competitors, using the same amount of resources
(i.e : India has an absolute advantage in operating call centers compared to the Philippines because of its low cost of labor and abundant labor force.)
Explanation:
Answer:
Tax shield on depreciation = 600
Explanation:
given data
new piece of equipment = $11,000
salvage value = $1,000
marginal tax rate = 30%
average tax rate = 20%
time period = 5 year
to find out
net effect of annual depreciation on the free cash flow
solution
we know here cost of asset and Salvage value so we get depreciation cost
depreciation cost is = 11000 - 1000 = 10000
and
annual depreciation = 2000
so that Tax shield on depreciation will be
Tax shield on depreciation = 2000 × 30%
Tax shield on depreciation = 600
Answer: C) A debit of $200,000.
Explanation:
In 2018, Hawk sold all the Diamond Investment bonds at $700.
The amount of reclassification adjustment would be;
= Sales price - original purchase price
= (1,000 * 700) - (1,000 * 500)
= $200,000
The amount should be debited to reverse the gains recorded over the other years.