Explanation:
Italy's opportunity cost of producing a pound of cheese is
= 5 barrels of beer
Germany's opportunity cost of producing a pound of cheese is
= 10 barrels of beer
Italy's opportunity cost of producing a barrel of beer is
=
= 0.2 pounds of cheese
Germany's opportunity cost of producing a barrel of beer is
=
= 0.1 pounds of cheese
Italy has a comparative advantage in producing cheese, while Germany has a comparative advantage in producing beer.
A country is said to be enjoying a comparative advantage if it can produce a good at a lower opportunity cost.
Italy can gain from trade if it is getting more than 5 barrels of beer for each pound of cheese. Similarly, Germany can gain from trade if it is getting more than 0.1 pounds of cheese.
Both the countries will gain from the trade if the price of trade is 8 barrels of beer per pound of cheese and 9 barrels of beer per pound of cheese.
Italy will not accept 3 barrels of beer per pound of cheese and 1 barrel of beer per pound of cheese because it is not covering the opportunity cost.
Answer:
A. The price of cell phones decreased by 18 percent last year
Explanation:
Macro Economics is the study of economy at aggregate level, as a whole. It gives an overview top view of economy. So, Macro Economic statements are about the entire (whole) economy, at an aggregate level.
B] Stating about - aggregate worker productivity ; C] Stating about - Gross domestic product, being a national income estimate (depicting level of economic activity in the economy) ; D] Stating about - US inflation rate (depicting about general price level in the economy). These are all Macro Economic Statements.
However, A] The price of cell phones decreased by 18 percent last year : is just a statement of particular cell phones market. It is not about entire economy as a whole. So, it is not a macro economic statement
1. As they will come to know the use and the safety given by the device they will show eagerness to install their fire-prevent sprinkler system.
2. This may affect their neighbors as Bob is well aware of the fire. So they should also show awareness...
Hello Dr, your question isn't comprehensive, plz rewrite it
Answer:
36.26%
Explanation:
Simple rate of return:
return/investment
<u>return:</u>
In this case, it will be the cost saving for the new machine: 161,000
<u>investment</u>
We will decrease the investment by the recovery from the old machine.
468,000 new machine - 24,000 salvage value of new = 444,000
<u>Then, proceed to calculate:</u>
161,000/444,000 = 0.3612 = 36.26%
Consideration:
Is important to state that this rate, do not consider the time value of money, neither the cash flow of the project.