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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

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3 years ago

If the ending inventory in the previous period was understated $17,000 and the ending inventory in the current period was overst

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Answer:

In the current period,

b. Cost of goods sold

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With the current period's beginning inventory (or previous period's ending inventory) understated by $17,000 and the overstatement of the current period's ending inventory by $27,000, it implies that the Cost of goods sold is understated by $10,000. Once this cost is understated, the net income will be overstated, as well as the owner's equity (via the retained earnings).

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3 years ago

Which situation is ideal for an entrepreneur to buy an existing business?

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Downturn and exceeds. If the economy in a market down turns more busisinesses fail and come up for sale.

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3 years ago

Read 2 more answers

The income statement for Splish Traveler Company shows cost of goods sold $307,000 and operating expenses (exclusive of deprecia

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Answer:

a. $349,700

b. $209,900

Explanation:

The computation is shown below:

Before computing the cash payment made to supplier first we have to find out the purchase amount which is shown below:

(a) Change in Finished goods + purchase = Cost of goods sold

-$25,800 + purchases = $307,000

So, the purchase is $332,800

Now

Cash paid to supplier is

= $332,800 + $16,900

= $349,700

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(b) Cash paid for operating expenses is

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3 years ago

If the government wants to minimize the deadweight loss of taxation, which of the following items are good candidates for an exc

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Answer:

A. emergency plumber services and C.insulin.

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From the list provided the best candidates for this would be emergency plumber services and insulin. That is because these are items or services that have a high supply but low demand due to the population of customers being a minority. This, therefore, causes market inefficiency which leads to deadweight loss. Other items like Coca-Cola and food mostly stay in equilibrium because products are made depending on the current demand and the customer population is the vast majority.

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