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3 years ago

See the production possibility tables for Marketopia and Econlandia below.

Business

1 answer:

Anestetic [448]3 years ago

5 0

Answer:

a. Marketopia has a comparative advantage in the production of pies.

Explanation:

The computation is shown below

As we know that the comparative advantage principle refers that the firm which has less opportunity cost in the production of a good should generate that specific good and specalize according to this

Now

for Marketopia

The opportunity cost of cookies is 18 by 30 pies = 0.6 pies

The opportunity cost of pies are 30 by 18 cookies = 1.67 cookies

For Ecolandia

The opportunity cost of cookies is 9 by 90 = 0.1 pies

The opportunity cost of pies is 90 by 9 = 10 cookies

We can see that Econlandia has the comparative advantage in cookies while on the other hand the marketopia has the comparative advantage in pies

Therefore the correct option is a.

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Common Stock is 2.5 million shares with a current price of $42 per share; the beta of the stock is 1.34; the standard deviation

Kamila [148]

Answer:

the firm's cost of equity is 17.808%

Explanation:

A firm's cost of equity is the return expected by holders of Common Stock.

The Data available allows us to use the Capital Asset Pricing Model (CAPM) to determine the cost of Equity.

Cost of Equity = Risk Free Rate + Company`s Beta × Expected Return on Market Portfolio

= 2.8%+1.34×11.2%

= 17.808%

3 0

3 years ago

Read 2 more answers

Lubbock county is planning to construct a bridge across the Rio de Lubbock to facilitate afternoon skiing in the El Dusto ski ba

Anarel [89]

Answer:

575,010.25

Explanation:

i = 5%. n = 20 Years. P = 6,500,000.

Annual Maintenance Cost for the first five years, A1 = 25,000.

Annual Maintenance Cost from year 6 thro' 15, A2 = 30,000.

Annual Maintenance Cost from year 16 thro' 20, A3 = 35,000.

Overhaul Costs = 500,000 at year 10.

EUAC = [6,500,000 + 500,000 (P/F, 5%, 10)] (A/P, 5%, 20) +

25,000 +[{5000 (F/A, 5%, 5) + 5000(F/A, 5%, 15)} (A/F, 5%, 20)]

= [6,500,000 + 500,000 (0.6139)] (0.0802) +

25,000 +[{5000 (5.526) + 5000 (21.579)}(0.0302)]

= 545,917.39 + 29,092.86 = 575,010.25

6 0

3 years ago

8. When Jill Thompson received a large settlement from an automobile accident,

Dennis_Churaev [7]

Answer:

The amount of fees that Jill will pay this year=$248.20

Explanation:

Expense ratio is a measure of how much fees that fund management firms charge their clients for their investments services. These fees cover administrative and operational costs. In our case, the expense ratio will be expressed as the fees that Jill will pay as a portion of the total amount she invested. The expense ratio can be expressed as shown;

ER=C/A

where;

ER=expense ratio

C=total funds cost

A=total funds assets

In our case;

ER=0.17%=0.17/100=0.0017

C=unknown to be determined

A=$146,000

replacing;

C=ER×A

C=0.0017×146,000=$248.20

The amount of fees that Jill will pay this year=$248.20

3 0

3 years ago

Don Juan, a single taxpayer, is the sole owner of DJ’s Inc., an S Corporation. This year, DJ’s Inc. incurred a massive $600,000

Darina [25.2K]

Answer:

Don Juan is sole business owner and his loss in excess to the minimum threshold amount is $250,000. So Don Juan may deduct the amount $350,000 in terms of loss.

If Don Juan does not deduct the loss this year, it would be carried forward to next fiscal statement

Explanation:

Part 1. The calculation is made as below

Excess of business loss ($600,000) – (other business income + Threshold amount ($250,000))

The minimum threshold amount is deductible from the Tax comes out to be $350,000

Part 2. The loss is reflected in next year’s tax statement as net operating loss and can be carried forward. So if Don Juan miss the loss deduction claim, he can do it next year.

4 0

4 years ago

A local restaurant owner is considering expanding into another rural area. The expansion project will be financed through a line

Vladimir79 [104]

Answer:

B) $2,500 per month rent.

Explanation:

Incremental cash flows do not include interest payments on investment capital, since the cash flows should be equally generated if you invest your own money, another partner invests his money or someone else lends it to you. The same logic applies to the administrative costs of the credit line.

5 0

4 years ago