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Lesechka [4]
2 years ago
12

Suppose that the United States has an absolute advantage over Mexico in producing both agricultural and manufactured goods. In t

he U. S., the opportunity cost of 1 unit of agricultural output is 2 units of manufactured goods. In Mexico, the opportunity cost of 1 unit of agricultural output is 1.5 units of manufactured goods. Total production in the U. S. and Mexico will be maximized if
Business
1 answer:
irina [24]2 years ago
7 0

Given the above scenario, the total production in the U.S. and Mexico will be maximized if Mexico focuses on Agricultural produce and the US on Manufactured produce.

<h3>What is product maximization?</h3>

Product maximization refers to the process via which two trading nationalities or entities focus on the goods where they have the least opportunity cost.

Thus, n this case,  the total production in the U.S. and Mexico will be maximized if Mexico focuses on Agricultural produce and the US on Manufactured produce.

Learn more about Product Maximization at;
brainly.com/question/4171648
#SPJ12

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Explanation:

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Which best ranks Agriculture, Food, and Natural Resources careers from highest to lowest required degree? Veterinarian → Nursery
pshichka [43]

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5 0
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How does having a menu that is uniform around the country provide mcdonald's with economies of scale? how is menu planning made
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Menu:

  • If the food menu is consistent, it can be said that economies of scale would be in effect. This is due to the fact that the fixed cost per unit actually gets to decrease, which then leads to a decrease in the average cost of production per unit as the sales volume keeps on increasing, giving the company a cost advantage and resulting in economies of scale. However, when extending to other nations, the menu planning becomes more difficult because local preferences and cultural norms vary widely. For example, beef is not allowed in India, thus the menu must be designed accordingly.
  • McDonald's benefits from economies of scale since customers can place larger orders to reduce the price of their food when there is a standard menu across the nation. The more of a good is produced, the lower the per-unit fixed cost is since these expenses are spread across a larger number of goods, according to Investopedia. Additionally, everywhere you travel in the nation, people are aware of what is on their menu.

Learn more about menu here brainly.com/question/24068570

#SPJ4

6 0
1 year ago
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