Answer:
Option B, both input and output prices will increase
Explanation:
Since the demand far smart watches is increasing, the price of watches will escalate to cater the opportunity cost. With the rising demand for smart watch, the demand for specialized input will also increase. Considering the growth in demand for specialized input, its cost shall also escalate to take the benefit of opportunity. Along with raw material, variable costs such as transportation, manpower, electricity etc. will also increase both in input (bringing raw material and producing final product) and output (export of the final product)
In nut shell, both the input and output price will increase.
Answer:
Explanation:
Adjusted Present Value (APV) and Net Present Value (NPV) are tools used in valuation of business operations or business projects. APV differs from NPV as the former uses cost of equity as the discount rate whereas the latter uses the WACC(weighted average cost of capital). Other business valuation methods are Payback period which is used to determine the number of years it takes for a project's future cashflows to fully recover the initial amount invested. Another example is Internal Rate of Return (IRR) which is the rate that determines how attractive a project; that which makes the NPV equal to zero.
Answer:
Option (d) is correct.
Explanation:
Trade between the nations will result in an increase in both competition and specialization.
When the trade among the nations increases then as a result competition increases because consumers have more number choices due to imported products from the other nations. This will increase the competition.
We know that the trade is largely based on the comparative advantage. The countries exporting the product in which it has a comparative advantage and importing the products in which it has a comparative disadvantage. This will increase the specialization in the production of certain goods.
The goods that are excludable are private goods and club goods. The correct answer to this question is option D.
The club goods are those goods that can be artificially scarce. These goods are non rival in nature but the excludability is quite high.
Private goods on the other hands are those goods that have their usage and consumption restricted to only one person or group.
Such goods can only be used by one party.
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