A country that can sell its products at a lower cost because it has lower standards for emissions from manufacturing facilities is making use of predatory dumping .
What Is Predatory Dumping?
- A form of anti-competitive behavior known as predatory dumping involves a foreign corporation underpricing its goods in an effort to stifle domestic competition.
- The corporation may eventually establish a monopoly in its chosen market by outpricing competitors.
What is an example of predatory dumping?
- Predatory dumping is regarded as a dishonest commercial practice. When a business is completely informed of its actions and goals, it happens.
- A glaring example is the onslaught of Chinese goods entering numerous international markets via physical storefronts, online, and marketplaces like E - Commerce company .
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Answer:
Decrease of net cash flow
Explanation:
Underthe indirect method, we calculate the cash flow based on the change in working capital:
The inventory, which is an asset will be purchased with cash or cash equivalent. Therefore, an increase on inventory produce a decrease of net cash flow.
If the inventory is purchased on account then, It will increase account payable, which represent an increase on the net cash flow. This generates a net effect of zero, 100,000 for account payable - 100,000 for inventory.
Which is what happens when purchase on account are made.
However, here we are asked for an increase on inventory only. We should simply state that this will represent a decrease in the cash flow for 100,000.
The opportunity cost of computer chip production is 2.
<h3 /><h3>Definition of opportunity cost.</h3>
Opportunity cost of the next best option that is forgone when one option is chosen over other options. Opportunity cost is also known as implicit cost.
<h3>Calculation of opportunity cost</h3>
In order to determine the opportunity cost divide the number of potato chips by the number of computer chips that can be made.
Opportunity cost = number of potato chips / number of computer chips
50 / 25 = 2
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Answer:
Option (C) is correct.
Explanation:
Contribution per unit:
= selling price - variable cost per unit
= $225 - $90
= $135 per unit
Break-even in (Units):
= fixed expense ÷ Contribution per uni
= 354,060 ÷ 135
= 2622.67
So, Break-even in Sales:
= Break-even units × selling price
= 2622.67 × $225
= $590,100
Therefore, the break-even in monthly dollar sales is closest to $590,100.
