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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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Part-time workers who want full-time work are counted as: A.) fully employed and therefore the official unemployment rate may ov

Vesnalui [34]

Answer: B

Explanation:

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2 years ago

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oksian1 [2.3K]

Um...october 22nd ?

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2 years ago

Read 2 more answers

Define an informal business

Katena32 [7]

The informal sector refers to those workers who are self employed, or who work for those who are self employed. People who earn a living through self employment in most cases are not on payrolls, and thus are not taxed. Many informal workers do their businesses in unprotected and unsecured places.

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2 years ago

The Work in Process Inventory account of a manufacturing company that uses an overhead rate based on direct labor cost has a $3,

QveST [7]

Answer:

$1,290

Explanation:

The work in process inventory account balance is given by the sum of the direct material cost, direct labor cost and the amount of applied overhead.

If the balance is $3,850, with material cost of $1,790 and direct labor cost of $770, the applied overhead is:

$O = \$3,850 - \$1,790 - \$770\\O=\$1,290$

The amount of the applied overhead is $1,290.

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3 years ago

An asset was purchased for $54,000 and originally estimated to have a useful life of 10 years with a residual value of $4,900. A

Keith_Richards [23]

Answer:

Annual depreciation for the first two years is $4,910.00

Book value at the end of year 2 $44,180.00

depreciation expense for each of the remaining years after revision is $21,110.00

Explanation:

The initial depreciation =cost-salvage value/useful life

cost was $54,000

salvage value is $4,900

useful life was 10 years

initial depreciation charge=($54,000-$4,900)/10=$4,910.00

Book value at the end of year 2=cost-depreciation for first 2 years

book value at the end of year 2=$54,000-($ 4,910*2)=$44,180.00

Depreciation expense for remaining years=($44,180-$1,960)/2=$21,110.00

3 0

2 years ago