Answer:
a. Italy has a comparative advantage in producing potatoes
Explanation:
Let us compute opportunity costs (OC).
In France,
OC of potato = 3000/9000
= 0.33 lemon
OC of lemon = 9000/3000
= 3 potato
In Italy,
OC of potato = 3000/3000
= 1 lemon
OC of lemon = 3000/3000
= 1 potato
France can produce potato at a lower OC than Italy, so France has comparative advantage in potato. Italy has a comparative advantage in producing lemons.
Trade is mutually beneficial if terms of trade (relative price) lies between the OC.
0.33 < Relative price of potato < 1 lemon, Or
1 potato < Relative price of lemon < 3 potato
Therefore, Italy has a comparative advantage in producing potatoes.
Answer:
$336.88
Explanation:
Interest adjustment refers to a one time interest payment that must be paid by the buyer for the accrued interest between the day when the sale was closed and the end of the month. In this case, we are told to use a 360 day year, that means that all months will have 30 days. Therefore, the number of days of July will be 14, not 15.
total interest for 14 days = $157,500 x 5.5% x 14/360 = $336.875 = $336.88
Answer:
These payments worth to me when I first start my college are$4,303.
Explanation:
Monthly Payments = P = $100
Interest rate = i = 5.5% = 0.055 = 0.055/12 = 0.00458
Number of years = 4 years
Period in a year = 12 months
Number of total periods = n = 4 x 12 = 48 periods
APV = P [ 1 - ((( 1 + i )^-n ) / i)]
APV = 100 [ (1 - (( 1 + 0.00458 )^-48 ) / 0.00458)]
Annuity present value = $4,303
Answer: The correct answer is "B. may be less than the variance of the least risky stock in the portfolio.".
Explanation: If a stock portfolio is well diversified, then the portfolio variance may be less than the variance of the least risky stock in the portfolio.
This occurs because diversifying the risk results in a lower risk in the total portfolio.
Answer: Equal to zero
Explanation: Slope is a number that describes the steepness of a line or curve. At the maximum point, the total revenue curve becomes flat. At this point the slop of the curve given by the rate of change in the curve is equal to zero. it is neither increasing nor decreasing at the maximum point.
Slope is calculated as,
Total revenue curve is the relation between total revenue and quantity. At the maximum, change in total revenue is zero so the slope will also be zero.
= 0
