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4 years ago

If a production possibilities frontier appears as a downward sloping straight line, which of the following occurs?

Business

1 answer:

lora16 [44]4 years ago

8 0

Answer:

The correct answer is option d.

Explanation:

A production possibility curve shows the different bundles of two goods that can be produced using all the resources and technology available.

The slope of the curve represents the opportunity cost of producing a good.

We cannot increase the production of both goods, so we need to sacrifice one good if we want to increase the production of the other.

A straight line downward sloping frontier means that the opportunity cost of production is constant. This means that the resources are perfectly substitutable in the production of two goods. So throughout the production process, the marginal opportunity of producing each additional unit will remain constant.

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Schuepfer Inc. bases its selling and administrative expense budget on budgeted unit sales. The sales budget shows 2,600 units ar

NISA [10]

Answer:

$39,720

Explanation:

Total fixed costs that represent current cash flows = $35,760 - $4,100

Total fixed costs that represent current cash flows = $31,660

Variable costs = 2,600 units * $3.10

Variable costs = $8,060

The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget will be

= $31,660 + $8,060

= $39,720

6 0

3 years ago

Holland Auto Parts is considering a merger with Workman Car Parts. Workman's market-determined beta is 0.9, and the firm current

Minchanka [31]

Answer:

0.097 OR 9.7%

Explanation:

Cost of Equity using CAPM-

Re = Rf + Beta (Rpm)

where,

Rf = Risk free return = 6%,

Rpm = Risk premium = 4%,

Beta = 0.9

Therefore,

Re = .06 + .9 (.04)

= 9.6%

Unlevered cost of equity:

ReU = Wd × rd + We × re

where,

ReU = Unlevered cost of equity,

Wd = Debt = 20%

rd = cost of debt = 8%

We = equity = 80%

re = cost of equity = 9.6%

Therefore,

ReU = 0.20 × 8% + .80 × 9.6%

= 9.28%

Levered cost of Equity:

New Debt = 60%,

New Equity = 40%,

New rd = 9%

ReL = ReU + (ReU - rd) (D ÷ E)

= 9.28% + (9.28% - 9%) (0.60 ÷ 0.40)

= 0.097 OR 9.7%

6 0

3 years ago

The great promise of exporting is that: Group of answer choices large revenue opportunities are often found in foreign markets.

DENIUS [597]

Answer:

large revenue opportunities are often found in foreign markets.

Explanation:

With regard to the promise made for an exporting purpose we get to know that there is a big opportunities with respect of generating high amount of revenue and the same could be founded in the foreign markets

Therefore as per the given situation, the above option represent the answer

and, the same should be applied

7 0

3 years ago

A talented musician plays for tips on the street but never seems to make very much money. Which of the following economic concep

rosijanka [135]

Answer:

The correct answer is: the free-rider problem.

Explanation:

The free-rider problem occurs when individuals do not want to pay their fair share for something others pay. The free-rider problem tends to happen when everyone has access to a source without constraints and there is little to no regulation over the use of the resource.

Thus, <em>the talented musician's jar is never full because of the free-rider problem: some people give the musician tips to eager him to continue doing it or because they liked the music while others, even if they liked and enjoyed the musician's play, are reluctant to tip him since they prefer to listen to the music for free.</em>

6 0

4 years ago

A graphics reproduction firm has four units of equipment that are automatic but occasionally become inoperative because of the n

elena55 [62]

Answer:

(a) Average number of unit in line = 0.256

(b) Average number of unit in operation= 3.209

Explanation:

Given Data:

Number of machine N = 4

Number of attendant (S) = 1

Service time (T)= 5 mins

Time required by the machine before servicing = 30 mins

Calculating the service factor (X) using the formula;

X = T/(T+U)

= 5/(5+30)

= 5/35

= 0.1429

(a) Calculating the average number of unit in line (L) using the formula;

L = N* (1-F)

where, N = Number of unit

F = efficiency factor

L = average number of unit in line

Using the finite queuing table at X = 0.1429 and S = 1,

Efficiency factor = 0.936

Substituting, we have;

L = 4*(1-0.936)

= 4* 0.064

= 0.256

H = N*F*X

= 4 *0.936*0.1429

= 0.535

(b) Calculating the average number of unit in operation using the formula;

Average number of unit in operation= Number of unit-down unit

But down unit = L+H

The formula becomes;

Average number of unit in operation= Number of unit-(L+H)

= 4 - (0.256+0.535)

= 4-0.791

= 3.209

6 0

3 years ago