Answer:
The correct answer is <em>d. Canada requires fewer resources than the U.S. to produce a bushel of wheat.</em>
Explanation:
A country (in this case Canada) has a comparative advantage over another country (in this case the United States) to produce a certain product (in this case wheat) if the production costs of that product (wheat) are less than from the other country, regardless of the opportunity cost of producing that other product in that country.
The comparative advantage is based on the fact that the country has developed greater efficiency in the use of resources or that it has greater ease of access to them due to better conditions of nature, greater technological development in the field in question, human capital more specialized in that economic field, etc.
The opportunity cost of producing a product or another in the same country does not affect a deterioration or increase of the comparative advantage developed to produce such a product.
Answer:
The correct answer is letter "B": Sole proprietorship.
Explanation:
A Sole proprietorship is a type of business with a single owner who runs the business and is fully liable for all the transactions of the company. Sole proprietorships are typically self-funded by the owners and are easy to create since there are not many government regulations on this type of organization and are easy to dissolve as well.
Answer: $33 without trade, $50 with trade
Explanation:
Wages can be defined as any monetary compensation paid by an employer to his/her employee for work done during a specific period of time. Payment may be calculated as a fixed amount for each accomplished task, or on hourly basis, daily rate, or based on the quantity of work done, which has been easily and adequately measured. The wages of this country if a efficiently calculated is $33 without trade and $50 with trade.
Answer:
the answer is =32291.67.
The firm should take the advantage of the new quantity as the total cost is lesser as compared with the old supplier. the firm can save $340 by approximately taking the advantage of the new quantity discount.
Explanation:
Solution
Given that:
The Annual demand D = 5000 boxes
The Cost C = $6.4 per each box
The Carrying cost H = 25% of the unit cost = 0.25*6.4 = 1.6
The ordering costs S = $25.00
Now,
EOQ =√2DS/H
EOQ =√(2*5000 * 25)/1.6
Thus,
EOQ =Q = 395.28
The Total cost = DC + (Q/2)H + (D/Q)S
= 5000*6.4 + (395.28 /2) 1.6 + (5000/395.28)25
Then,
T = 32000 + 316.23 + 316.23
= 32632.46
So,
The new supplier has offered to sell the same item for the amount of $6.00 if Q = 3,000 boxes
Hence,
The total cost = 5000 * 6 + (3000/2)1.5 + (5000/3000)25
= 30000 + 2250 + 41.67
= 32291.67
Therefore, The firm should take the advantage of the new quantity as the total cost is lesser as compared with the old supplier. the firm can save $340 by approximately taking the advantage of the new quantity discount.
Answer:
A. $117 million
B.13%
C. $21.75
Explanation:
B. Calculation to determine How large a loss in dollar terms will existing FARO shareholders experience on the announcement date
Expected Loss= 390*30%
Expected Loss= $117 millions
Therefore How large a loss in dollar terms will existing FARO shareholders experience on the announcement date will be $117 millions
B. Calculation to determine What percentage of the value of FARO’s existing equity prior to the announcement is this expected gain or loss
First step is to calculate the Existing Shares Value
Existing Shares Value =36*$25
Existing Shares Value= $900 millions
Now let calculate the Expected Loss %
Expected Loss % = $ 117/$ 900
Expected Loss % = 13%
Therefore the percentage of the value of FARO’s existing equity prior to the announcement is this expected gain or loss will be 13%
C. Calculation to determine At what price should FARO expect its existing shares to sell immediately after the announcement
Price Per Share: $ 25*(1 - 0.13)
Price Per Share$25*0.87
Price Per Share: $21.75
Therefore what price should FARO expect its existing shares to sell immediately after the announcement is $21.75
