All categories

2 years ago

If country A has a comparative advantage in the production of good X over country B, then: _______________

1 answer:

6 0

Considering the situation described above, if country A has a comparative advantage in producing good X over country B, then: <u>the domestic opportunity cost of producing X in country A is lower than in country B.</u>

<h3>What is Opportunity Cost?</h3>

Opportunity cost is often used in economics to describe the profit lost when one choice or option is taken over another.

<h3>What is Comparative Advantage?</h3>

Comparative Advantage is the term used to describe the economy's capacity to produce a specific good or service at a lower opportunity cost than its trading competitors.

Therefore, given that country A has a comparative advantage in producing good X over country B, this equates to country A having a lower opportunity cost than country B.

Hence, in this case, it is concluded that the correct answer is option C.

Learn more about Opportunity Cost here: brainly.com/question/3611557

You might be interested in

In some markets, the government regulates the price of utilities so that they are

Charra [1.4K]

Answer:

In Utah’s Arches National Park we can see many interesting shapes like this one. Many different things helped to shape this arch: earthquakes, rivers, freezing water, and wind. Only one of these made the surface of the arch smooth and rounded. That was

Explanation:

6 0

4 years ago

A 1990 Naval Aerospace Research Laboratory Study noted that the fixations that occur during a scan require about 18 seconds.

Anastaziya [24]

This answer is A. True

7 0

3 years ago

The Holmes Company's currently outstanding bonds have a 9% coupon and a 12% yield to maturity. Holmes believes it could issue ne

Ivan

Answer:

7.20%

Explanation:

Given that

Coupon rate = 9%

Yield to maturity = 12%

And marginal tax rate is 40%

So by considering the above information, the after tax cost of debts is

= Yield to maturity × (1 - tax rate)

= 12% × (1 - 0.40)

= 7.20%

After considering the tax rate and then multiplying with the yield to maturity we can get the after tax cost of debt

We ignored the coupon rate

8 0

3 years ago

A company completes 21,000 units this month and has ending goods in process inventory of 3,000 units which are estimated to be 4

kolezko [41]

Answer:

Total cost of transferred to finished goods inventory = $ 136,500

Explanation:

To value cost of transferred finished goods, we multiply the cost per equivalent unit of production (cost per EUP) by the the number of equivalent units (EUP) for each of the cost element.

So the value of the finished inventory, is determined as follows:

Value of inventory = cost per E.U.P × number of E.U.P

Direct Material = $5.00 × 21,000 =$ 105,000

Conversion cost = $1.50 × 21,000= $31,500

Total cost of transferred to finished goods inventory =

$ 105,000 + $31,500

= $ 136,500

5 0

3 years ago

Peyton sells an office building and the associated land on May 1 of the current year. Under the terms of the sales contract, Pey

Aleksandr-060686 [28]

Answer:

$3,728,203

Explanation:

Particulars Amount

Cash Received $2,408,400

Add: Mortgage assume by purchaser $1,445,040

Less: Broker's commission ($96,336)

Less: Points paid by Peyton <u>($28,901) </u>

Amount realized <u>$3,728,203</u>

8 0

3 years ago