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jok3333 [9.3K]
3 years ago
12

The first benefit of trade given in Chapter 2 is that "trade makes people better off when preferences differ." How does the stor

y of Professor Boudreaux and Dr. Bostwick demonstrate this?
Business
1 answer:
Bess [88]3 years ago
7 0

Answer:  Dr. Bostwick was able to provide medical services that did not satisfy his own wants, so he exchanged those services for money that he used to buy things that did. Professor Boudreaux had money but desperately wanted a pediatric gastroenterologist to treat his son.

Explanation:

Trade generates value by transferring goods or services from those who value them less to the people who need them more. The only way people can decide to specialize in the making of a single good or service is because they already know they can trade it for other goods they do need.

In the video 'How the Division of Knowledge Saved My Son's Life', Professor Boudreaux explains that it was thanks to Dr. Bostwick specialization on pediatric gastroenterology that his son´s life was saved.

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The manufacturing cost of the widgets your company makes has dropped by 50%. One of your customers, Sam, tells you he knows this
olga_2 [115]

Based on the above scenario, the answer is No. I would not tell Sue, because  manufacturing cost falls under business's internal factors that tends to affect firm's  profitability.

<h3>What is discount?</h3>

Others are:

  • Also note that if i tell her,  my actions will be found to be ethically incorrect.

The term discount is known to be an act or process where a price of product or services are  reduced prices to a price lower than the exact sum of that item.

Note that Based on the above scenario, the answer is No. I would not tell Sue, because  manufacturing cost falls under business's internal factors that tends to affect firm's  profitability.

Learn more about discount from

brainly.com/question/1548141

#SPJ1

4 0
2 years ago
Lyle corp. is a distributor of pharmaceuticals and sells only to retail drug stores. lyle received unsolicited samples of non-pr
Rudik [331]
<span>Fair market value should include as gross income in Lyles return for the receipt of these samples. It is the estimate of the market value of a property when the buyer and seller are knowledgeable and unpressured. Precedent or extrapolation helps in finding the Fair market value estimate.</span>
8 0
3 years ago
"Bill thought he had received the best deal on his new car. Shortly after the purchase, Bill started to notice certain disadvant
prohojiy [21]

Answer:

Cognitive dissonance

Explanation:

Cognitive dissonance is the term which occurs or happen when the tension arises among the attitudes or beliefs of the person and the decision that contradicts with those pre- existing thinking modes.

In short, it means that it occurs when a person select among the two equally unappealing or equally attractive options.

So, in this case, Bill thinks that he had received the best deal for the car, but after purchasing, he noticed the disadvantages of the car as he learned regarding the new cars. Therefore, he is experiencing the cognitive dissonance.

6 0
3 years ago
As a result of their influence on the quantity, variety, and quality of products, trade barriers ________ domestic consumers.
likoan [24]

The answer in the space provided is hurt. It is because of their influence in the following factors such as the variety, quantity and the quality of products, the trade barriers will most likely hurt the domestic consumers involved in it.

5 0
4 years ago
How much more is a perpetuity of $1,000 worth than an annuity of the same amount for 20 years? Assume an interest rate of 10% an
Veronika [31]

Answer:

The perpetuity is worth $1486.43 more than the ordinary annuity

Explanation:

A perpetuity that with an annual cash inflow or cash outflow payable for a foreseeable future - for an infinite number of period

The present value of a perpetual annuity is calculated as

PV= A/r

PV = 1000/0.1

PV =&10,000

On the other hand, an annuity with  annual cash inflows or cash outflows for certain number of years is called an ordinary annuity.

The present value of an ordinary annuity is determined as follows:

PV = (1 - (1+r)^n)/r   × A

     = (1-(1+0.1)^(-20))/0.1 × 1000

    = 8.5135  × 1000

   = 8513.56

Difference in PV =  10,000 - 8513.56

                            = $1486.43

The perpetuity is worth $ 1,486.43 more than the ordinary annuity

3 0
3 years ago
Read 2 more answers
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