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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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The motivating force behind an increase in supply in a long-run adjustment to equilibrium is

sasho [114]

Economic profits that are present in the short run.

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3 years ago

The marketing concept is a philosophy that a business organization should employ to satisfy customers' needs while achieving the

Crazy boy [7]

Answer:

A. True

Explanation:

The statement marketing concept is a philosophy that a business organization should employ to satisfy customers' needs while achieving the overall goals of the organization is correct because The marketing concept relays on four foundations:

Target market
Customer needs,
Integrated marketing
Profitability.

3 0

3 years ago

One of the long-run effects of higher government budget deficits is growth in the economy's private sector at the same time the

saveliy_v [14]

Complete Question:

One of the long-run effects of higher government budget deficits:

A. is growth in the economy's private sector at the same time the government sector shrinks.

B. a redistribution of real Gross Domestic Product (GDP) away from government-provided goods and toward more privately provided goods. C. a fall in the equilibrium price level.

D. an increase in the government's share of the nation's economic activity.

Answer:

D. an increase in the government's share of the nation's economic activity.

Explanation:

One of the long-run effects of higher government budget deficits is an increase in the government's share of the nation's economic activity because it would be mainly responsible for funding of the economy, thereby causing higher real Gross Domestic Product (GDP).

A government budget deficit arises when government expenses exceed it's revenue.

It usually expresses the financial health of a nation over a period of time.

3 0

3 years ago

While entrepreneur is a type of _______ role, leader is a(n) ______ role.

sp2606 [1]

While entrepreneur is a type of decisional role, leader is a(n) interpersonal role.

<h3>Who is an entrepreneur?</h3>

An entrepreneur is an individual who is responsible for making decisions regarding the control, financing and organization of a business.

<h3>Who is a leader?</h3>

A leader is an individual who is either elected or appointed to oversee the activities of a particular group of people at a particular time. He must be able to interact effectively with his followers in order to ensure unity and progress.

Learn more about entrepreneur:

brainly.com/question/353543

#SPJ9

4 0

1 year ago

Whispering Winds Corp. Income Statement For the Year Ended December 31, 2017 Sales revenue Cost of goods sold Operating expenses

garri49 [273]

Answer:

<h2> Whispering Winds Corp.</h2>

Statement of Cash Flows (Indirect Method) 2017

Cash flow from operating activities:

net income $161,100

Adjustments to reconcile net income:

+ depreciation expense $40,160

+ loss on sale of equipment $2,020

Change in current assets:

- increase in accounts receivable ($40,050)

- increase in inventory ($44,310)

+ increase in prepaid expenses $1,980

Change in current liabilities:

+ increase in accounts payable $2,580

- decrease in accrued exp. payable ($10,070)

Net cash provided by operating activities $113,410

Cash flow from investing activities:

purchase of new equipment ($164,450)

sale of old equipment $33,650

Net cash provided by investing activities ($130,800)

Cash flow from financing activities:

Proceeds from issue of new stocks $171,150

- redemption of bonds ($49,180)

- dividends paid ($85,680)

Net cash provided by financing activities $36,290

<u>Net increase in cash $18,900</u>

4 0

3 years ago