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Feliz [49]
3 years ago
11

Consider the two countries of Swala and Atlantis. Swala is a major producer of wheat and rice while Atlantis specializes in the

production of marble and automobile parts. Engaging in free trade benefits both countries since Swala is an agrarian nation and Atlantis lacks arable land. This follows the theory of comparative advantage, and we can say that engaging in free trade benefits all countries that participate in it; however, this conclusion is based on which inaccurate assumptions?
a. We have assumed a simple world in which there are only two countries.
b. We have assumed the prices of resources and exchange rates in the two countries are dynamic.
c. We have assumed there are barriers to the movement of resources from the production of one good to another within the same country.
d. We have assumed that agrarian nations do not specialize in producing fertilizers.
e. We have assumed diminishing returns to specialization.
Business
1 answer:
Ivenika [448]3 years ago
7 0
I think the answer is C
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Issued by money-centered financial firms, these short- or medium-term insured debt instruments pay higher interest than a regula
Agata [3.3K]

Answer:

That statement is true

Explanation:

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8 0
3 years ago
When the u.s. treasury issues new bonds to replace bonds that have matured, it is engaging in discretionary fiscal spending. inc
lidiya [134]
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8 0
3 years ago
Shannon’s Irish Red averages on premise sales of 1,200 pints per month. What is the anticipated profit (contribution dollars) pe
Drupady [299]

Answer:

2,700

Question Extract:

Assume that Shannon’s is considering the introduction of a new craft beer called Irish Stout that will be derived from its award winning Irish Red. Initially, Irish Stout will only be sold “on premise” at the brewery. Currently, pints of Irish Red consumed on premise sell for $5.00 per pint with unit variable costs of approximately $2.75 per pint. Variable costs are predominantly comprised of the costs of ingredients and utilities that directly affect the brewing process. The new craft beer will be positioned at a slightly higher price, $5.25 per pint and its unit variable costs will be about $3.25 due to the higher cost of some ingredients. The relevant price, cost, and margin data are below. Irish Red Irish Stout Price $ 5.00 $ 5.25 Unit Variable Costs $ 2.75 $ 3.25 Unit Contribution $ 2.25 $ 2.00

Explanation:

Assume that Irish Red’s sales without the introduction of Irish Stout  are expected to be 1,200 units. Since the unit contribution for Irish Red is $2.25 per unit, the overall resulting contribution will be 1,200 x $2.25 = $2,700

The anticipated profit (contribution dollars) per month associated with sales of Shannon’s Irish Red assuming that the Irish Stout is not introduced is 2,700.

5 0
4 years ago
Directions: For each question, select the letter corresponding to the correctly written sentence.
andriy [413]
C- “Erik bought a good book: he read it in one afternoon” has proper punctuation and capitalization.

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8 0
3 years ago
Tom and George form T and G Corporation. Tom transfers machinery worth $100,000 with a basis to Tom of $40,000, while George tra
borishaifa [10]

Answer:

The answer is D.

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George has a basis of $30000 in the shares of T&G corporation

I.e (20000+10000) = 30000

5 0
3 years ago
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