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The total cost of producing in country A is less than the total cost

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The total cost of producing in country A is less than the total cost  [#permalink]

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New post 05 Apr 2016, 02:25
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The total cost of producing in country A is less than the total cost of producing in country B. Price is equal in both countries. Total sales in country A is higher than total sales in country B. However country B's total revenue is higher than country A's total revenue.
Which of the following, if true, would MOST likely resolve the apparent discrepancy above?

A. Government of country A further subsidizes cost in country A.

B. Country B uses no kind of auction sales that sales to highest bidder regardless of price.

C. Country B uses archaic accounting principle.

D. Both countries are very poor but A is ruled by a highhanded dictator.

E. Both countries are not closed economy.
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Re: The total cost of producing in country A is less than the total cost  [#permalink]

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New post 05 Apr 2016, 03:25
A?


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Re: The total cost of producing in country A is less than the total cost  [#permalink]

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New post 05 Apr 2016, 10:32
Nez wrote:
The total cost of producing in country A is less than the total cost of producing in country B. Price is equal in both countries. Total sales in country A is higher than total sales in country B. However country B's total revenue is higher than country A's total revenue.
Which of the following, if true, would MOST likely resolve the apparent discrepancy above?

A. Government of country A further subsidizes cost in country A.

B. Country B uses no kind of auction sales that sales to highest bidder regardless of price.

C. Country B uses archaic accounting principle.

D. Both countries are very poor but A is ruled by a highhanded dictator.

E. Both countries are not closed economy.


There is one possible scenario that can lead to the conclusion.
This is kind of assumption.
B's revenue comes from selling elsewhere as well as from selling at home.
Other options are meaningless.
E
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Re: The total cost of producing in country A is less than the total cost  [#permalink]

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New post 17 Sep 2016, 05:11
Nezdem wrote:
The total cost of producing in country A is less than the total cost of producing in country B. Price is equal in both countries. Total sales in country A is higher than total sales in country B. However country B's total revenue is higher than country A's total revenue.
Which of the following, if true, would MOST likely resolve the apparent discrepancy above?

A. Government of country A further subsidizes cost in country A.

B. Country B uses no kind of auction sales that sales to highest bidder regardless of price.

C. Country B uses archaic accounting principle.

D. Both countries are very poor but A is ruled by a highhanded dictator.

E. Both countries are not closed economy.

Production in A < Production in B

Hence, B exports to A. Therefore, option E is the closest one to that, stating that both countries have open economy
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Re: The total cost of producing in country A is less than the total cost  [#permalink]

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New post 21 Sep 2016, 03:06
Got this wrong, logic behind E might be that cross country sales occur and as such B's sales happen in A and A's sales happen in B. Therefore Country B ends up making higher revenues since prices remain same.
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Re: The total cost of producing in country A is less than the total cost  [#permalink]

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New post 27 Apr 2017, 01:29
Nezdem wrote:
The total cost of producing in country A is less than the total cost of producing in country B. Price is equal in both countries. Total sales in country A is higher than total sales in country B. However country B's total revenue is higher than country A's total revenue.
Which of the following, if true, would MOST likely resolve the apparent discrepancy above?

A. Government of country A further subsidizes cost in country A.

B. Country B uses no kind of auction sales that sales to highest bidder regardless of price.

C. Country B uses archaic accounting principle.

D. Both countries are very poor but A is ruled by a highhanded dictator.

E. Both countries are not closed economy.


Can anybody confirm if the correct equation for the revenue , sales , cost, sales is as given below :

sale price per unit * total units sold = revenue.
Total revenue - total manufacturing cost= profit

If the equations are not correct then can somebody give the correct equations and explain the question . Thanks .
I am confused as to how the cost price impacts the revenue .
Cost price or manufacturing cost can impact profits but how does manufacturing cost impact revenue?

isn't revenue = Sale price per unit * total units sold ?
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Re: The total cost of producing in country A is less than the total cost  [#permalink]

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New post 27 Apr 2017, 01:53
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stne wrote:
Nezdem wrote:
The total cost of producing in country A is less than the total cost of producing in country B. Price is equal in both countries. Total sales in country A is higher than total sales in country B. However country B's total revenue is higher than country A's total revenue.
Which of the following, if true, would MOST likely resolve the apparent discrepancy above?

A. Government of country A further subsidizes cost in country A.

B. Country B uses no kind of auction sales that sales to highest bidder regardless of price.

C. Country B uses archaic accounting principle.

D. Both countries are very poor but A is ruled by a highhanded dictator.

E. Both countries are not closed economy.


Can anybody confirm if the correct equation for the revenue , sales , cost, sales is as given below :

sale price per unit * total units sold = revenue.
Total revenue - total manufacturing cost= profit

If the equations are not correct then can somebody give the correct equations and explain the question . Thanks .
I am confused as to how the cost price impacts the revenue .
Cost price or manufacturing cost can impact profits but how does manufacturing cost impact revenue?

isn't revenue = Sale price per unit * total units sold ?



B has more revenue although Total sales in country A is higher than total sales in country B

revenue = Sale price per unit * total units sold
In this formula its given Sale price per unit is same in both country
Then for revenue to be more" total units sold" By B>A
B exports its product to A ------>all the conditions are satisfied
Hence E
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Re: The total cost of producing in country A is less than the total cost &nbs [#permalink] 27 Apr 2017, 01:53
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