Answer:
Answer D
Explanation:
i got it right on my test
The words should be exact so you don’t confuse it wth other ideas or change it entirely
Answer:
The answer is B) 340 bushels of corn and 500 bushels of oats.
Explanation:
Cornland´s workers have a comparative advantage in the production of corn, each worker can grow 40 bushels per year. Since Cornland has 20 workers in total, its maximum possible output of corn bushels would be 800 (20x40=800).
Oatland´s workers have a comparative advantage in the production or oats, each worker can grow 50 bushels per year. Since Oatland has 20 workers in total, its maximum possible output of oats bushels would be 1,000 (20x50=1,000).
Currently both countries combined are producing 460 bushels of corn (400+60=460) and 500 bushels of oats (100+400=500). If each country specializes in the production of the good in which they have a comparative advantage, then their total combined output would increase by 340 bushels of corn and 500 bushels of oats.
- Corn: specialized production - current production = 800-460 = 340 bushels
- Oats: specialized production - current production = 1,000-500 = 500 bushels
Answer:
A company agrees to pay more to build a plant in order to be able to change the plant's inputs and/or outputs at a later date if conditions change.
Explanation:
Real option analysis
This is simply described as a form of an analysis of capital budgeting projects. It is often used by managers so as to influence the size and riskiness of a project's cash flows. And this can be done only by taking different actions or at the end of the project's life.
It uses the usual NPV capital budgeting analysis along with an analysis of opportunities as a result of manager's responses to changing circumstances that can change a project's outcome.
Examples of Real Options
1. Investment timing
2. Abandonment/shutdown
3. Flexibility
4. Growth/expansion
Flexibility Option
This type of re option simply allows operations to be changed based on how conditions change during a project's life. It is said to exists when it is useful spending money today, which therefore helps one to maintain flexibility down the line. That is, either inputs or outputs (or both) can be altered.
Answer:
$12,380
Explanation:
The beginning inventory is $9,150
The budgeted ending inventory is $10,420
The cost of goods sold is $11110
Therefore the budgeted purchases can be calculated as follows
= $10,420 + $11,110-$9,150
= $21,530 - $9,150
= $12,380
Hence the budgeted purchases is $12,380
