Answer:
The correct option is c. raise G by $30 or reduce T by $40.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
(Advanced analysis) Answer the question on the basis of the following information for a mixed open economy. The letters Y, Ca, Ig, Xn, G, and T stand for GDP, consumption, gross investment, net exports, government purchases, and net taxes respectively. Figures are in billions of dollars.
Ca = 25 + 0.75(Y - T)
Ig = Ig0 = 50
Xn = Xn0 = 10
G = G0 = 70
T = T0 = 30
Refer to the information. If government desired to raise the equilibrium GDP to $650, it could:
a. raise G by $45 or reduce T by $10.
b. raise G by $40 and reduce T by $30.
c. raise G by $30 or reduce T by $40.
d. raise both and T by $40.
e. reduce G by $30 and increase T by $40.
The explanation of the answer is now provided as follows:
Equilibrium GDP (Y) can be obtained as follows:
Y = C + G + I + Xn …………………….. (1)
Substituting all the values in the question into equation (1) and solve for Y, we have:
Y = 25 + 0.75(Y - 30) + 70 + 50 + 10
Y = 0.75Y - 22.50 + 155
Y – 0.75Y = 132.50
0.25Y = 132.50
Y = 132.50 / 0.25
Y = 530
Therefore, we have:
Y = Current equilibrium GDP = $530
Amount of increase in equilibrium GDP required = Desired equilibrium GDP – Current equilibrium GDP = 650 - 530 = 120
From the question, we have:
Ca = 25 + 0.75(Y - T) ………………. (2)
The 0.75 in equation (2) is the marginal propensity to consume (MPC). Therefore, we have:
MPC = 0.75
Expenditure multiplier = 1 / (1 - 0.75) = 4
Tax multiplier = - MPC / (1 – MPC) = -0.75 / (1 – 0.75) = -3
Amount of increase in G or government expenditure required = Amount of increase in equilibrium GDP required / Expenditure multiplier = 120 / 4 = $30
Amount of tax cut or decrease in T required = Amount of increase in equilibrium GDP required / Tax multiplier = 120 / (-3) = -$40
Therefore, correct option is c. raise G by $30 or reduce T by $40.
Suppose a basketball player has made 294 out of 359 free throws. If the player makes the next 3 free throws, I will pay you $20. Otherwise you pay me $26. Step 1 of 2 : Find the expected value of the proposition. Round your answer to two decimal places. Losses must be expressed as negative values.
Answer: -$0.74
Explanation:
Expected value of the proposition is:
= (Probability that player makes next 3 free throws * 20) - (Probability that player does not make the next 3 free throws * 26)
Probability that player does not make the next 3 free throws = 294/359 * 294/359 * 294/359
= 0.549235557
Expected value of proposition:
= (0.549235557 * 20) - ( (1 - 0.549235557) * 26)
= 10.98471114 - 11.719875518
= -$0.74
Thirsty Cactus Corp. just paid a dividend of $1.50 per share. The dividends are expected to grow at 25 percent for the next 9 years and then level off to a 5 percent growth rate indefinitely. If the required return is 13 percent, what is the price of the stock today?
Answer:
$143.40
Explanation:
The dividend for the next year = [tex]\text{ current year dividend} \times (1 + \text{growth})[/tex]
= $ 1.50 x (1 + 0.13)
= 1.50 x 1.30
= $ 1.95
The dividend in the second year = 1.95 x 1.30
= $ 2.54
Similarly, the dividend for the year 9 is = [tex]$1.50 \times (1.30)^9$[/tex]
= $ 15.91
The value of the stock at the end of year 9,
[tex]$=\frac{\text{Dividend of year 10}}{\text{(Required rate of return - Growth rate)}}$[/tex]
[tex]$=\frac{15.91\times1.05}{0.13-0.05}$[/tex]
= $ 208.81
The present value factor [tex]$=\frac{1}{(1+r)^n}$[/tex]
where, r = rate of interest = 13% = 0.13
n = years (1 to 9)
So, the present value factor for the 2nd year is [tex]$=\frac{1}{(1+0.13)^2}$[/tex]
[tex]$=\frac{1}{(1.13)^2}$[/tex]
[tex]$=\frac{1}{1.2769}$[/tex]
= 0.783147
Therefore, the price of the stock today is calculated as to be $ 143.40
Consider the markets for three products below. Indicate which characteristics of a competitive market are met by these markets.
Market : Gasoline
a. Large number of buyers
b. Standardized good
c. Full information
d. No transaction cost
e. Participants are price takers
Market: barbershop haircuts
a. Large number of buyers
b. Standardized good
c. Full information
d. No transaction cost
e. Participants are price takers
Market: bicycles
a. Large number of buyers
b. Standardized good
c. Full information
d. No transaction cost
e. Participants are price takers
Answer:
Market : Gasoline
b. Standardized good
c. Full information
e. Participants are price takers.
Market : Barbershop haircuts
a. Large number of buyers
c. Full information
Market : Bicycles
a. Large number of buyers
b. Standardized good
c. Full information
d. No transaction cost
Explanation:
The three markets will have different characteristics which will cause the competition. The Gasoline market has standardized product and the customers are price takers. Usually the prices are fixed for the products and there is no bargaining.
Cape Corp. will pay a dividend of $3.00 next year. The company has stated that it will maintain a constant growth rate of 4.5 percent a year forever.
a. If you want a return of 15 percent, how much will you pay for the stock?
b. If you want a return of 8 percent, how much will you pay for the stock?
Answer:
a.
$27.27
b.
$75
Explanation:
Use the following formula to calculate the value of the stock
Value of Stock = Expected Dividend / ( Rate of return - Growth rate )
a.
Where
Expected Dividend = $3.00
Rate of return = 15%
Growth rate = 4.5%
Placing values in the formula
Value of Stock = $3.00 / ( 15% - 4% )
Value of Stock = $3 / 11%
Value of Stock = $27.27
b.
Where
Expected Dividend = $3.00
Rate of return = 8%
Growth rate = 4.5%
Placing values in the formula
Value of Stock = $3.00 / ( 8% - 4% )
Value of Stock = $3 / 4%
Value of Stock = $75
In a sales contract, the passage of risk of loss from a seller to a buyer gives the buyer the right to insure the goods and the right to recover from third parties who damage them.
a. True
b. False
The statement - "In a sales contract, the passage of risk of loss from a seller to a buyer gives the buyer the right to insure the goods and the right to recover from third parties who damage them". Thus, option (a) is correct.
What is sales contract?A sales contract, customer orders, or contract for sale is a legal transaction in which a buyer purchases assets from a seller for an agreed-upon monetary value. It is an evident old practice of exchange that is currently controlled by statute law in many common law countries.
"In a sales contract, the passing of risk of loss from a seller to a buyer allows the buyer the opportunity to insure the products and the right to collect from third parties who destroy them,".
Therefore, it can be concluded that the statement mentioned above is true. Hence, option (A) is correct.
Learn more about sales contract here:
https://brainly.com/question/29350867
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A(n) ______ cost requires a future outlay of cash and is relevant for current and future decision making. Multiple choice question. opportunity sunk historical out-of-pocket
Answer:
out-of-pocket
Explanation:
In Accounting, costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.
Cost pool is simply the amount of money spent by a firm on a particular activity.
Generally, an activity-based costing uses numerous cost pools such as manufacturing cost or customer services and numerous cost drivers such as direct labor hours worked, number of changes used in engineering department, etc.
Generally, an out-of-pocket cost requires that an individual or business outlay their future cash-flow and it must be relevant for current and future decision making.
Prior to recording adjusting entries, the Office Supplies account had a $490 debit balance. A physical count of the supplies showed $175 of unused supplies available. The required adjusting entry is: debit/credit [ Select ] to [ Select ] account for [ Select ] debit/credit [ Select ] to [ Select ] account for [ Select ]
Answer: See explanation
Explanation:
Based on the information that's provided in the question, the required adjusting entry goes thus:
Unadjusted ending balance of supplies = $490
Actual supplies ending balance existing physically = $175
From the information above, the supplies used during the period will be:
= $490 - $175
= $315
Therefore,
Debit office supplies expenses $315 Credit office supplies account $315
Davis Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were: Cost Percent Complete Material costs 7,500 75% Conversion costs 4,999 45% A total of 5,400 units were started and 4,700 units were transferred to the second processing department during the month. The following costs were incurred in the first processing department during the month: Materials costs $112,900 Conversion costs $93,900 The ending inventory was 85% complete with respect to materials and 30% complete with respect to conversion costs. The cost per equivalent unit for materials for the month in the first processing department is closest to:__________.
a. $21.37
b. $19.47
c. $20.04
d. $20.76
Answer:
The answer is "21.37'
Explanation:
Please find the solution in the attached file.
According to a survey done by the Anti-Fraud Collaboration, the majority of participants believe it is the job of senior executives within an organization to set the tone to deter fraud.
a) true
b) false
The following information applies to the questions displayed below] A local Chevrolet dealership carries the following types of vehicles
Inventory Items Quantity Cost per unit NRV per Unit
Vans 4 27000 25000
Trucks 7 18000 17000
2-door sedans 3 13000 15000
4-door sedans 5 17000 20000
Sports cars 1 37000 40000
SUVs 6 30000 28000
Because of recent increases in gasoline prices, the car dealership has noticed a reduced demand for its SUVs, vans, and trucks
A) Compute the total cost of the entire inventory.
B) Determine whether each inventory item would be reported at cost or net realizable value (NRV).
C) Prepare necessary journal entry to write down inventory from from close to net realize value.
D) The write-down of inventory from cost to net realizable value reduces total assets and increases total expenses, leading to lower net income and lower retained earnings. True OR False
Answer:
Chevrolet Dealership
A) The total cost of the entire inventory is:
= $575,000
B) Each inventory would be reported at the LCNRV:
Inventory Items Quantity Reporting Cost/Value
Vans 4 NRV
Trucks 7 NRV
2-door sedans 3 Cost
4-door sedans 5 Cost
Sports cars 1 Cost
SUVs 6 NRV
C) Journal Entry:
Debit Cost of goods sold $27,000
Credit Inventory $27,000
To write-down costs to net realizable values.
D) TRUE.
Explanation:
a) Data and Calculations:
Inventory Items Quantity Cost per unit NRV per Unit LCNRV
Vans 4 27000 $108,000 25000 $100,000
Trucks 7 18000 126,000 17000 119,000
2-door sedans 3 13000 39,000 15000 39,000
4-door sedans 5 17000 85,000 20000 85,000
Sports cars 1 37000 37,000 40000 37,000
SUVs 6 30000 180,000 28000 168,000
Total Cost $575,000 $548,000
Implement a table and re-organize your page contents so that it is displayed within the table (you can organize the table's content as you like).
2) Add one external CSS file and apply it to your 2 pages (the style sheet should have at least Fonts, Color, sizing and background). The CSS should provide a uniform look/feel between the 2 pages.
Answer:
just here for points
Explanation:
iskksns
today, many long-term care policies are treated as tax-qualified contracts. Which of the following is not correct regarding tax-qualified long-term care contracts?
A. Tax-qualified long-term care policies must provide benefits that are limited to long-term care services.
B. These policies can be provided under an employer sponsored cafeteria plan.
C. These policies allow employers to provide this benefit, take a curent income tax deduction and allow the employee to avoid income inclusion.
D. The premiums for these policies may be deductible either above the line or below line.
Answer:
C. These policies allow employers to provide this benefit, take a current income tax deduction and allow the employee to avoid income inclusion.
Explanation:
Tax qualified long term care contracts usually insurance policies which provide benefit to the company and policy amounts can be deducted from the tax. These benefits are limited to the long term care services. The premium amount of these policies is deductible which provide tax benefit.
Texas Curtain Works is in the process of preparing its budget for next year. Cost of goods sold has been estimated at 70 percent of sales. Fabric purchases and payments are to be made during the month preceding the month of sale. Wages are estimated at 20 percent of sales and are paid during the month of sale. Other operating costs amounting to 25 percent of sales are to be paid in the month following the month of sales. Sales revenue is forecasted as follows:
Month Sales
February $440,000
March $450,000
April $480,000
May $500,000
June $510,000
What is the amount of fabric purchases during the month of March?
a) $480,000
b) $336,000
c) $288,000
d) $300,000
Answer:
b. $336,000
Explanation:
Here, the Fabric purchases & payments are to be made during the month before the month of sale.
The Amount of fabric purchases during the month of march = 70% of sales of the month of April
Purchases of March = 70% * $480,000
Purchases of March = 0.70 *$480,000
Purchases of March = $336,000
So, the amount of fabric purchases during the month of March is $336,000.
If there is a shortage in the market, the market price is too _______________. The quantity demanded will be ________________ the quantity supplied. Thus, the market price must ____________ , which will _____________ the quantity supplied and ____________ the quantity demanded.
Answer:
low
greater
increase
increase
decrease
Explanation:
Equilibrium price is the price at which quantity demand equal quantity supplied. Above equilibrium price there is a surplus - quantity supplied exceeds quantity demanded.
Below equilibrium price there is a shortage - quantity demanded exceeds quantity supplied
When there is a shortage in the market, the market price is too low. As a result, quantity demanded exceeds quantity supplied. Shortage would lead to an increase in price towards equilibrium. This would lead to an increase in the quantity supplied and a decrease in quantity demanded
A US Treasury is quoted at $137.111 based on $100 par. Today is 12/31/2020. Assume that transaction date and settlement date is the same. The coupon rate is 8%. The bond has 30-year maturity. What is the yield-to-maturity
Answer: 5.46%
Explanation:
You can use excel to solve for this.
Number of periods = 30
Coupon = Payment = 8% * 100 = $8
PV = $137.11
FV = $100 par value
Do this and the YTM would be: 5.46%
This makes sense because the bond is trading at a premium which means that the YTM is less than the coupon rate.
Allen Green is a single taxpayer with an AGI (and modified AGI) of $214,000, which includes $172,000 of salary, $26,200 of interest income, $10,400 of dividends, and $5,400 of long-term capital gains. What is Allen's net investment income tax liability this year, rounded to the nearest whole dollar amount
Answer:
$532
Explanation:
The income that is considered for NIIT is the (a) lesser of the net investment income or (b) the amount by which MAGI exceeds the applicable threshold.
a. $42,000 ($26,200 interest income + $10,400 dividends + $5,400 Long-term capital gains)
b. $14,000 ($214,000 - $200,000)
Note: MAGI threshold of $200,000 for single taxpayer is applicable before they fall under the NIIT bracket of 3.8% of tax.
Net Investment Income = $14,000
Net investment income tax liability = Net Investment Income * 3.8%
Net investment income tax liability = $14,000 * 3.8%
Net investment income tax liability = $532
So, Allen's net investment income tax liability this year is $532.
Which of the following would be relevant in the make or buy decision? Direct materials Depreciation on equipment with no resale value A) Yes Yes B) Yes No C) No Yes D) No No
Answer:
B) Yes No
Explanation:
Materials cost are incremental and relevant whereas Depreciation on equipment with no resale value are irrelevant.
A 3-year bond has an 8.0% coupon rate and a $1,000 face value. If the yield to maturity on the bond is 10%, calculate the price of the bond assuming that the bond makes semiannual coupon payments.
Answer:
$738.68
Explanation:
the price of the bond is $738.68.
Consider the following gasoline sales time series data. Click on the datafile logo to reference the data.
Week Sales (1000s of gallons)
1 16
2 20
3 20
4 23
5 18
6 17
8 19
9 23
10 19
11 14
12 21
a. Using a weight of 1/2 for the most recent observation, 1/3 for the second most recent observation, and 1/6 the most recent observation, compute a three-week weighted moving average for the time series (to 2 decimals). Enter negative values as negative numbers.
Week
Time-Series Value Weighted Moving
Average Forecast Forecast
Error
(Error)2
1
2
3
4
5
6
7
8
9
10
11
12
Total
b. Compute the MSE for the weighted moving average in part (a).
MSE =
Do you prefer this weighted moving average to the unweighted moving average? Remember that the MSE for the unweighted moving average is 8.90.
Prefer the unweighted moving average here; it has a (greater/smaller) MSE.
c. Suppose you are allowed to choose any weights as long as they sum to 1. Could you always find a set of weights that would make the MSE at least as small for a weighted moving average than for an unweighted moving average? (Yes/ No)
Answer:
a) attached below
b) MSE for weighted moving average = 14.5
c) Yes
Explanation:
a) Computing a three-week weighted moving average using
1/2 for most recent , 1/3 for second most recent and 1/6 for third most recent observation
Given data :
Week Sales (1000s of gallons)
1 16
2 20
3 20
4 23
5 18
6 17
7 19
8 23
9 19
10 14
11 21
solution attached below
B) Determine MSE for the weighted moving average
MSE = ∑ (error)^2 / 8
= 116.0289 / 8 = 14.50
The MSE for unweighted moving average ( 8.90 ) is smaller than the MSE for weighted moving average
C) Yes I will find a weight that makes at least the MSE for weighted moving average than unweighted moving average
Question 3 4 Marks Mi Tierra Driving School charges $680 per student to prepare and administer written and driving tests. Variable costs of $408 per student include trainers’ wages, study materials, and gasoline. Annual fixed costs of $63,920 include the training facility and fleet of cars. Requirements 1. For each of the following independent situations, calculate the contribution margin per unit and the breakeven point in units by first referring to the original data provided: a. Breakeven point with no change in information. b. Decrease sales price to $544 per student. c. Decrease variable costs to $340 per student. d. Decrease fixed costs to $53,040.
Answer:
Results are below.
Explanation:
Giving the following information:
Selling price= $680
Unitary variable cost= $408
Fixed cost= $63,920
To calculate the contribution margin and break-even point in units, we need to use the following formula:
Unitary contribution margin= selling price - unitary variable cost
Break-even point in units= fixed costs/ contribution margin per unit
a:
Unitary contribution margin= 680 - 408= $272
Break-even point in units= 63,920 / 272
Break-even point in units= 235
b:
Unitary contribution margin= 544 - 408= $136
Break-even point in units= 63,920 / 136
Break-even point in units= 470
c:
Unitary contribution margin= 680 - 340= $340
Break-even point in units= 63,920 / 340
Break-even point in units= 188
d:
Unitary contribution margin= 680 - 408= $272
Break-even point in units= 53,040 / 272
Break-even point in units= 195
You want to invest $37,000 today to accumulate $41,650 to buy a car. If you can invest at an interest rate of 3% compounded annually, how many years will it take to accumulate the required amount
Answer:
4 years
Explanation:
It takes 4 years to accumulate the required amount.
Using the Base Case, calculate total depreciation expense for the year 2023E. Assume that depreciation expense on assets pre-2020E is $15,000 per year. Depreciation on capital expenditures made from 2020E-2024E assumes a 4-year useful life and a salvage value equal to 10% of the original cost.
Review Later
a) $19,500
b) $33,000
c) $30,000
d) $20,000
Answer:
b) $33,000
Explanation:
Capital Expenditure = $20,000
Salvage Value in % = 10%
Useful Life = 4 Years
Salvage Value = Salvage Value% * Capital Expenditure
Salvage Value = 10% * 20,000
Salvage Value = $2,000
Annual Depreciation = (Capital Expenditures - Salvage Value) / Useful Life
Annual Depreciation = ($20,000 - $2,000) / 4
Annual Depreciation = $18,000 / 4
Annual Depreciation = $4,500
Depreciation of 2023E = Depreciation Pre 2020E + Depreciation on capital expenditures in 2020E + Depreciation on capital expenditures in 2021E + Additional Depreciation on capital expenditures in 2022E + Additional Depreciation on capital expenditures in 2023E
Depreciation of 2023E = $15,000 + $4,500 + $4,500 + $4,500 + $4,500
Depreciation of 2023E = $33,000
g how long (in years) will it take to triple an investment made at a 2% interest rate if the interest is compounded monthly
The following Information is avallable for the year ended December 31: Beginning raw materials inventory Raw materials purchases Ending raw materials Inventory Office supplies expense $ 4100 5,600 4,600 2,600 The amount of raw materials used in production for the year is: __________ a) $5.100 b) $8,300 c) $5,700 d) $5,600. e) $9,700
Answer:
a. $5,100
Explanation:
Raw materials used in production = Beginning raw materials inventory + Raw materials purchases - Ending raw materials inventory
Raw materials used in production = $4100 + $5,600 - $4,600
Raw materials used in production = $5,100
So, the amount of raw materials used in production for the year is $5,100.
The marginal product of labor in the production of computer chips is chips per hour. The marginal rate of technical substitution (MRTS) of hours of labor for hours of machine capital is . What is the marginal product of capital? The marginal product of capital is nothing chips per hour. (Enter your response as an integer.)
Answer: 500 chips per hour
Explanation:
Marginal rate of technical substitution is calculated by the formula:
= Marginal product of labor / Marginal product of capital
0.20 = 100 / marginal product of capital
Marginal product of capital * 0.20 = 100
Marginal product of capital = 100 / 0.20
= 500
Choose the correct objective statement for this task.
Suppose that you have been given the task of organizing a graduation open house party for your younger brother who is graduating from high school.
a. To throw a graduation party Saturday afternoon after graduation for 50 guests, that provides ample entertainment and food, and allows my younger brother time to socialize with all the guests, at a cost of $400 or less, and all guests will be pleased with the party.
b. To throw a graduation party.
c. To throw a graduation party Saturday afternoon after graduation for 50 guests, that provides ample entertainment and food, and allows my younger brother time to socialize with all the guests.
d. To throw a graduation party Saturday afternoon after graduation for 50 guests, that provides ample entertainment and food, and allows my younger brother time to socialize with all the guests, at a cost of $400 or less.
Answer:
The correct objective statement for this task is:
b. To throw a graduation party.
Explanation:
Option b is the correct answer because it is concise and straight to the point. It does not start enumerating unnecessary details about the graduation party. Like a good objective statement, option b focuses the reader's attention to the main purpose of the task at hand. This is not so with options a, c, and d, which added details that were not covered by the task description.
the cost of quality has two components: the cost of good quality. the costs for good quality are the cost of monitoring and preventing defects. the cost of poor quality are often hidden, hitting customers and departments not immediately related to production. some experts argue that:
Answer: Quality is never costless because monitoring and prevention have costs
Explanation:
The cost of quality has two parts which are the cost of prevention and the cost of failure. The cost of quality simply refers to the sum of the prevention cost and the cost of failure.
It should be noted that spending more on prevention helps in reducing the cost of failure. According to experts, quality is is never costless because monitoring and prevention have costs.
1. Drawing on discussions of informational justice, how should Andrea approach the morning briefing? Should she be honest and informative in explaining corporate actions in the downsizing, or should she be more guarded?
Answer:
Andrea should be honest and informative in explaining her corporation's actions in downsizing.
Explanation:
By being honest and forthright by providing adequate informational justice to the employees affected by downsizing, she would gain the confidence of those that will not be affected. This will ensure that the workers remain motivated and productive. Doing informational justice requires the management to provide adequate explanations and rationale for the decision made to downsize the entity's workforce.
The electronic invoicing and payment (EIPP) system for the B2B environment is similar to the electronic bill presentment and payment (EBPP) system for the B2C environment. a) True b) False
Answer:
a) True
Explanation:
Electronic bill payment and presentment (EBPP) can be regarded as process that is been utilized by
companies in collection of payments electronically by utilization of systems such as Automated Teller Machines (ATMs) as well as Internet and direct-dial access. This has turned to a core component of online banking as regards to some financial institutions today, some industries such as telecommunications and insurance providers make use of it.
Electronic invoicing and presentment payment (EIPP) can be regarded as process involving sending of electronic invoice to customers using the internet, as well as the ability of customers to be able to pay that invoice online also. It give a solution that brings about increased productivity, as well as given room for business owner to spend more time in developing their business as well as relationships with their customers.
It should be noted that the The electronic invoicing and payment (EIPP) system for the B2B environment is similar to the electronic bill presentment and payment (EBPP) system for the B2C environment.
Stan’s Sporting Goods is a competitor that can manufacture seven soccer balls out of a possible ten, if it makes one soccer net. Which statement correctly compares the two businesses?
Sabrina’s Soccer has a comparative advantage over Stan’s Sporting Goods because Sabrina’s Soccer has a lower opportunity cost.
Stan’s Sporting Goods has a comparative advantage over Sabrina’s Soccer because Stan’s Sporting Goods has a lower opportunity cost.
Sabrina’s Soccer has an absolute advantage over Stan’s Sporting Goods because Sabrina’s Soccer has a lower production cost.
Stan’s Sporting Goods has an absolute advantage over Sabrina’s Soccer because Stan’s Sporting Goods has a lower production cost.
Answer:
Sabrina’s Soccer has a comparative advantage over Stan’s Sporting Goods because Sabrina’s Soccer has a lower opportunity cost.
Answer: A
Explanation: PogChamp
