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3 years ago

Explain the theory of absolute advantage

Business

1 answer:

galina1969 [7]3 years ago

6 0

Answer:

Explanation: Absolute advantage is when a producer can produce a good or service in greater quantity for the same cost, or the same quantity at a lower cost, than other producers.

Absolute advantage can be the basis for large gains from trade between producers of different goods with different absolute advantages.

By specialization, division of labor, and trade, producers with different absolute advantages can always gain more than producing in isolation.

Absolute advantage is related to comparative advantage, which can open up even more widespread opportunities for the division of labor and gains from trade.

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Denver Mart is considering a project with a life of 5 years and an initial cost of $136,000. The discount rate is 11 percent. Th

Ray Of Light [21]

Answer:

Denver Mart

The net present value of this project given the sales forecasts is:

= $98,400.40

Explanation:

a) Data and Calculations:

Project's estimated life = 5 years

Initial project cost = $136,000

Discount rate = 11%

Initial estimated sales = 2,200 at $26

Revenue in years 1, 2, and 3 each = 2,200 * $26 = $57,200

Sales forecast of Year 4 and 5 revised to 1,750 units

Probability of 1,000 * 50% = 500

Probability of 2,500 * 50% 1,250

Total sales forecast = 1,750 units

Revenue in years 4 and 5 each = 1,750 * $26 = $45,500

Present value of revenue:

Year 1, 2, and 3 = $57,200 * Annuity factor

= $57,200 * 3.102 = $177,434.40

Year 4, PV = $45,500 * 0.659 = $29,984.50

Year 5, PV = $45,500 * 0.593 = $26,9815

Year 1 to 5 added = $234,400.40

Present value of revenue = $234,400.40

Present value of costs = 136,000.00

Net present value = $98,400.40

8 0

3 years ago

A public franchise A. is a corporation that is owned by stockholders. B. is an unregulated monopoly necessary for the public goo

OlgaM077 [116]

Answer:

The correct answer is D. is a government designation that a private firm is the only legal producer of a good or service.

Explanation:

The Franchise is a type of contract in which one company (the franchisor) grants to another (the franchisee) the right to market certain products or services within a given geographical area and under certain conditions, in exchange for financial compensation.

Therefore we have two main figures:

The franchisor: provides marketing rights so that the franchisor can use its brand, the commercial name and the design of the franchisee's establishment. In most cases, these elements cannot be modified to maintain the same levels of quality and form of the franchisor. In addition, the know-how, business experience and technical and commercial assistance during the term of the agreement are also provided.
The franchisee: the owner of the business and who makes the necessary investments for its implementation, in addition to paying a fee to the franchisor to use your brand. This fee is like a "right of entry" into the business, in addition periodic amounts may also be established in the contract according to the volume of sales and / or technical and commercial assistance. In addition, the franchisee exclusively has the franchise regime with respect to a specific geographical area and a type of products.

5 0

3 years ago

Percentage analysis, ratios, turnovers, and other measures of financial position and operating results are a. a substitute for s

Kazeer [188]

Answer:

b. useful analytical measures.

Explanation:

All of the financial measures described in the question are all useful analytical measures used in many big companies. The more tools a company can use for their analytics the better and more accurate the results will be. Better and more accurate results then lead to better decisions on what direction to take the company.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

8 0

3 years ago

A decrease in demand, with supply constant, results in a(n)

riadik2000 [5.3K]

Answer:

The correct answer is decrease in equilibrium price and a decrease in equilibrium quantity.

Explanation:

The supply being constant, a decrease in demand will cause the demand curve to shift to the left while the supply curve will remain the same.

The new demand curve will intersect the supply curve at a lower point. This rightward shift in the demand curve will cause both the equilibrium quantity as well as the equilibrium price to fall.

4 0

3 years ago

Which of these bottled water brands is produced by the makers of coca-cola?

katovenus [111]

The answer to this question is <span>DASANI
the makers of coca cola was interested in entering bottled water brands after seeing the success of Aquafina (which was produced by coca cola's rival)
</span><span> between May 2014 and 2015 alone, DASANI managed to achieve impressive sales of 1.05 Billion dollar</span>

8 0

3 years ago