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Ekland
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The total cost of producing in country A is less than the total cost 05 Apr 2016, 02:25
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95% (hard)

Question Stats:

34% (01:48) correct 66% (01:57) wrong based on 320 sessions

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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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E
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The total cost of producing in country A is less than the total cost 05 Apr 2016, 03:25
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A?


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Ekland
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The total cost of producing in country A is less than the total cost 05 Apr 2016, 10:32
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Nez
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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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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The total cost of producing in country A is less than the total cost 17 Sep 2016, 05:11
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Nezdem
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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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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The total cost of producing in country A is less than the total cost 21 Sep 2016, 03:06
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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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The total cost of producing in country A is less than the total cost 27 Apr 2017, 01:29
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Nezdem
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.
Show more

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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The total cost of producing in country A is less than the total cost 27 Apr 2017, 01:53
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stne
Nezdem
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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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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The total cost of producing in country A is less than the total cost 08 Nov 2019, 10:02
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Ekland
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.
Show more


Price is equal in both countries. - What is it trying to say? Cost Price? Sell Price? Inflation?

Just by reading this statement I could realize how bad the question is.

Coming to the Solution:
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.

One very plausible explanation would be : If they trade freely making them open economies. That is mentioned in option E. but not convinced. I was also considering A but whatever.
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The total cost of producing in country A is less than the total cost 09 Jun 2024, 07:28
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[E]
This option suggests that both countries engage in international trade, which could explain why country B's revenue is higher despite lower domestic sales—it might be making up for it through exports or access to larger markets.
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The total cost of producing in country A is less than the total cost 28 Oct 2025, 20:33
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