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4 years ago

e. Which country has a comparative advantage in producing cars? f. Which country has a comparative advantage in producing grain?

Business

1 answer:

natulia [17]4 years ago

7 0

Answer:

Comparative advantage in Cars - Japan
Comparative advantage in grain - America

Explanation:

The country that has a competitive advantage in producing something is the one that has less opportunity cost when they do so. In other words, they give up less of another good in order to produce a good.

The Japanese can either produce 4 cars or 5 tons of grain in a year. If they forgo 1 car therefore they produce 5/4 = 1.25 tons of grain per year.

If Americans forgo 1 car they produce 10/4 = 2.5 tons of grain.

<em>Japan has a lower opportunity cost producing cars so they have a comparative advantage. </em>

For Japan to produce 1 ton of grain they will forgo 5/4 = 0.8 cars. For Americans to produce 1 ton of grain they will forgo 4/10 = 0.4 cars.

<em>America has a lower opportunity cost producing grain so they have a comparative advantage. </em>

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Consider a firm with a contract to sell an asset for $151,000 four years from now. The asset costs $96,000 to produce today. a.

abruzzese [7]

Answer:

a) loss of 3,388.87

b) it will break even at 11.99%

Explanation:

we will discount the 151,000 at 13% to know the current sales revenue at the sale

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 151,000

time 4 years

rate 0.13

$\frac{151000}{(1 + 0.13)^{4} } = PV$

PV 92,611.13

the present value is 92,611.13 while the cost is 96,000

there is a loss of 3.388,87‬

To know at which rate the firm break even:

PV = 96,000

$\frac{151000}{(1 + r)^{-4} } = 96,000$

$\sqrt[-4]{96,000/151,000} - 1 = r$

r = 0.11989

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3 years ago

In what ways was the economic prosperity of the 1920s genuine, and in what ways did this prosperity disguise serious economic pr

Elan Coil [88]

Answer:

In what ways was the economic prosperity of the 1920s genuine, and in what ways did this prosperity disguise serious economic problems?

Do you think most people perceived the underlying problems in the economy? Why or why not?

Explanation:

The factors which contributed to the counterfeit prosperity of the 1920s were the abundant availability of consumer goods; farmers bought plenty of land and farm equipment and produced a large amount of goods for market; the availability of credits and the stock market performance led the people to obtain higher standards of living and leisure time; President Herbert Hoover and other politicians declared that the economy was doing extremely well.

But people realized a dramatic change in the economy, when it went from this apparent prosperity to a severe depression between 1929 and 1932, with the stock market-black tuesday in Oct., 29, 1929, when the farmers-demand for food goes down after WWI, prices went down, farmers over produced, could not pay back loans and land was lost ; loans not paid back caused banks failed, people began spending less on consumer goods and personal income and debt-income gap between rich and poor increased.

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<h3>What is informative promotion?</h3>

This is where features of the good being advertised are elaborated on to ensure the viewer understands the product's functionality.

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Options for this question include:

a. Persuasive promotion

b. Informative promotion

c. Connective promotion

d. Reminder promotion

Find out more on types of promotion at brainly.com/question/11131986

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