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swat32
3 years ago
12

The primary difference between absolute and comparative advantage is A. absolute advantage refers to the ability to produce more

of a good or service using the same amount of resources and comparative advantage refers to the ability to produce a good or service at a lower opportunity cost. B. absolute advantage is a concept that was utilized in communist countries and comparative advantage is a capitalist idea. C. absolute advantage can never change while comparative advantage depends on the relative cost of a​ good's resources. D. absolute advantage refers to the ability to produce a good or service at a lower opportunity cost and comparative advantage refers to the ability to produce more of a good or service using the same amount of resources.
Business
1 answer:
miskamm [114]3 years ago
6 0

Answer:

A. absolute advantage refers to the ability to produce more of a good or service using the same amount of resources and comparative advantage refers to the ability to produce a good or service at a lower opportunity cost.

Explanation:

Let's assume there are two countries, x and y.

X produces 10 cheese and 10 bottles of wine while Y produces 6 cheese and 3 bottles of wine. Country x has an absolute advantage in the production of wine and cheese because it produces higher quantities of both goods when compared to country y.

Country x has a comparative advantage in the production of wine because its opportunity cost (1) is lower than the opportunity cost of country y (2).

Country y has a comparative advantage in the production of cheese because its opportunity cost (1/2) is less than that of country x (1).

I hope my answer helps you

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You want to purchase a new car, and you are willing to pay $19,970. If you can invest at 10% per year and you currently have $15
andrezito [222]

Answer:

It will take 3 years to have enough money to purchase the car.

Explanation:

We can use either Compounding or Discounting Formula to determine the time it will take to make $19,970 from $15,000 when the investment rate is 10%. Lets go with the Compounding Formula:

                           Future Value = Present Value * (1 + i) ^ n

<u>Re-arrange equation for "n" which is the Time Period:</u>

⇒ FV / PV = (1 + i) ^ n

Taking log on both sides;

⇒ log (FV / PV) = log (1 + i) ^ n

OR log (FV / PV) = n log (1 + i)

OR n = log (FV / PV) / log (1 + i)

Simply put values now;

⇒ n = log (19,970 / 15,000) / log (1 + 10%) = log (1.33) / log (1.1) = .12 / .04

OR n = 3

3 0
3 years ago
Theory X managers implement a more rigid environment. a. increase diversity. b. strive to cut costs and increase efficiency. c.
pychu [463]

Answer:

b. strive to cut costs and increase efficiency.

Explanation:

Theory X managers is pessimistic. They believe people are lazy and unproductive. They will look to implement politics to increase the productivity,.

3 0
3 years ago
The following costs were incurred in May:
algol13

Answer:

d. $55,600

Explanation:

Direct Labor = $34,000

Manufacturing Overhead Cost = $21,600

Conversion Cost = Direct Labor + Manufacturing Overhead Cost

Conversion Cost = $34,000 + $21,600

Conversion Cost = $55,600

So, the conversion costs during the month totaled $55,600.

3 0
3 years ago
Conjoint studies are run to understand how consumers make __________.
seropon [69]

Conjoint studies are run to understand how consumers make TRADEOFFS. Tradeoffs is a technique wherein the person literally reduce an outcome in order to achieve a more desirable result that is beneficial to that person. In conjoint studies, people will weigh the product by its features and uses and will choose what is the most preffered feature to the least preferred feature.

3 0
3 years ago
In a relatively new neighborhood with 345 homes, the median home price is $350,000. Last year, 58 houses were sold. The turnover
Mariulka [41]

Answer:

Turnover index = 17 % (Approx)

Explanation:

Given:

Total number of house = 345

Number of house sold = 58

Find:

Turnover index

Computation:

Turnover index = [Number of house sold/Total number of house]100

Turnover index = [58/345]100

Turnover index = [0.168115]100

Turnover index = 16.8115

Turnover index = 17 % (Approx)

7 0
3 years ago
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