The Macro Islands can produce either 250 bamboo towels or 500 botanical soaps using all its resources. The Micro Islands can produce either 30 bamboo towels or 300 botanical soaps using all its resources. Based on this information, which of the following is true?The Macro Islands have a comparative advantage in producing both goods.
The Micro Islands have a comparative advantage in producing neither good.
The Micro Islands have a comparative advantage in producing bamboo towels.
The Micro Islands have a comparative advantage in producing botanical soaps.
The Micro Islands have a comparative advantage in producing both goods.

Answers

Answer 1
Answer:

Answer:

The Micro Islands have a comparative advantage in producing botanical soaps.

Explanation:

Comparative advantage can be defined as the ability of an economy to produce a good at lower opportunity cost than other economies. This enables the economy sell the product at lower prices, therefore having higher margin of profit than other economies.

The opportunity cost of Micro Island in producing 300 botanical soaps is the cost of producing 30 bamboo towels. The opportunity cost is quite low.

While for Macro Island the opportunity cost of producing 500 botanical soaps is 250 bamboo towels. The opportunity cost is higher than for Micro Island.


Related Questions

Fig Garden is a popular chain of restaurants for authentic Italian food. Recently, a customer found a dead insect in the pasta he was served. The customer's negative review about the restaurant went viral. Fig Garden's chief executive officer (CEO) publicly apologized for the mishap and posted pictures of the restaurant's kitchen, after being fumigated, on several social networking websites. In this scenario, which of the following does Fig Garden's CEO demonstrate? A. Audience control B. Crisis management C. Letharsy D. Experiential selling
A company wishes to raise $27 million by issuing 15-year semi-annual coupon bonds with face value of $1,000 and coupon rate of 6.60 percent. The bonds will have a yield to maturity of 7.70 percent. Determine the minimum number of these bonds the company needs to issue to raise the desired amount of money.
5. In the October 23, 1999 issue, the Economist reports that the interest rate per annum is 5.93% in the United States and 70.0% in Turkey. Why do you think the interest rate is so high in Turkey? Based on the reported interest rates, how would you predict the change of the exchange rate between the U.S. dollar and the Turkish lira?
Paradise, Inc., has identified an investment project with the following cash flows.Year Cash Flow1 = $5752= $ 8253= $1,1254 =$1,325(a) If the discount rate is 11 percent, what is the future value of these cash flows in year 4?(b) What is the future value at a discount rate of 16 percent? (c) What is the future value at discount rate of 29 percent?
Sheridan Publishing identified the following overhead activities, their respective costs, and their cost drivers to produce the three types of textbooks the company publishes.Activity (Cost) Cost Driver Delux Moderate EconomyMachine maintenance ($330,000) machine hours 250 750 1,000Setups ($630,000) setups 35 20 15Packing ($166,000) cartons 10 30 60Photo development ($574,000) pictures 4,400 2,400 1,400Deluxe textbooks are made with the finest quality paper, six-color printing, and many photographs. Moderate texts are made with three colors and a few photographs spread throughout each chapter. Economy books are printed in black and white and include pictures only in chapter openings.Required:Sheridan currently allocates all overhead costs based on machine hours. The company produced the following number of books during the prior year:Deluxe Moderate Economy50,000 150,000 200,000Determine the overhead cost per book for each book type.

Professor Wellman is constructing a demographic questionnaire for use in aresearch project. One question asks students to report whether they are currentlyliving in an "urban," "suburban," or "rural" setting. This is an example of a/an:A. nominal scale.B. ordinal scale.C. ratio scale.D. interval scale.

Answers

Answer:

B. ordinal scale

Explanation:

  • The ordinal scale the scale of the measurement that uses the labels and classified them into an arranged orders and implying that the class must be put into such as order were one class is considered to be greater than other class.and this label exists on a four levels of measurement. as the ranking of the urban and suburban and the rural areas.

Sherman Peterson is an attorney in Los Angeles. Peterson uses the direct write-off method to account for uncollectible receivables.At January 31, 2014, Peterson’s accounts receivable totaled $15,000. During February, he earned revenue of $18,000 on account and collected $19,000 on account. He also wrote off uncollectible receivables of $1,800 on February 28, 2014.Requirements
1.Use the direct write-off method to journalize Peterson’s write-off of the uncollectible receivables.
2.What is Peterson’s balance of Accounts Receivable at February 28, 2014?

Answers

Answer:

1) Bad debt expense (Debit)           1,800

   Accounts receivable (Credit)      1,800

2) $12,200

Explanation:

1) Write off method of accounting directly credits accounts receivable instead of creating a provision for doubtful debt. Therefore following entry is recognized

Bad debt expense (Debit)             1,800

Accounts receivable (Credit)        1,800

2) Ledger balance of accounts receivable is $ 12,200 calculated as follows:

Opening Balance (31 January 2014)                15,000

Add: Sales on account during February         18,000

Less: Collection during February                    (19,000)                

Less: Written off                                                 (1,800)

Balance at 28 February 2014                        $12,200

The benefits and detriments of using electronic records EHR for your patience

Answers

EHR's provide quick and easy access to patients records. It also reduces the need for paper charts and filling space. The chances of losing a single document gets reduced as well since files are saved on a server. Information is stored more neatly and easily identifiable.However, if the server crashes or gets hacked the patient information is either lost or completely compromised. Servers go down and have bugs which can delay access to information that is immediately needed. Servers also need constant maintenance.

A state government reported a $9,000 increase in net position in the motor pool internal service fund, a $12,000 increase in net position in the water enterprise fund, and a $7,000 increase in the employee pension fund. The motor pool internal service fund provides service primarily to the police department. What amount should the city report as the change in net position for business-type activities in its statement of activities?

Answers

Answer: $12,000

Explanation:

Only the $12,000 will be reported in Statement of Activities ( the financial statement used to report revenues and expenses for governmental and business-type activities) as a change in net position for business-type activities.

Why?

The Water Entreprise Fund is the only listed fund type listed that would fall under BUSINESS TYPE because it is an ENTREPRISE Fund. The Motor Pool Internal Service falls under GOVERNMENT ACTIVITIES and the Pension Find is only displayed in the Fund Financial Statements.

Because the Water Entreprise Fund is the only fund here concerned with BUSINESS TYPE activities, it's rise by $12,000 is what will be reported as the Net Change.

b. (5 points) Currently, some of Baryla's inventory includes $2.3 million of outdated and damaged goods that simply remain in inventory and are not salable. What inventory ratio must the good inventory maintain in order to achieve an overall turnover ratio of at least 6.3 (including the unsalable items)? (Round to one decimal place.)

Answers

Answer:

8.7

Explanation:

Sales = $93,000,000

Gross profit margin = 45%

Gross profit= 45%*93,000,000 = $41,850,000

Gross profit = sales - cost of goods sold

Cost of goods sold = Gross profit + sales = 41,850,000 + 95,000,000 = $53,150,000

Inventory turnover = cost of goods sold/inventory

Inventory = $52,250,000/6.3= $8,436,508

Given:

Total Inventory = $8,436,508

Unsalable items = $2,300,000

We have the formula:

Good inventory = Total Inventory - Unsalable items = $8,436,508 - $2,300,000 = $6,136,508

The inventory turnover ratio the good inventory must maintain in order to achieve an overall turnover ratio of at least 6.3 (including the unsalable items) is  

53,150,000/6,136,508 = 8.7

Because there are a significant number of "green-conscious" consumers, it is a legitimate market segment for many companies that have heretofore relied on more traditional segmentation such as demographics or psychographics. a. True
b. False

Answers

Answer:

True

Explanation:

Market segments are customer groups, based on common characteristics people within each group share, such as; age, sex, geographic location, race, religion.

The significant increase in the number of green (or environment) conscious consumers make it a legitimate market segment that can be targeted by companies.

Other Questions