Answer:
a. 30 units of corn and 30 units of wheat.
Explanation:
In a two-product, two-country world, international trade leads to specialization. Each country will produce the product in which it has comparative advantage. In this case, Freedonia will produce only corn and Sylvania will produce only wheat. With all constant, the country will consume the same amount of that product, but the surplus will exchange it for the other product. Freedonia will use all its workers to produce corn, in a year they will produce 6*10= 60 units of corn. Sylvania will use the 10 workers to produce wheat, in a year they will produce 6*10=60 units of wheat.
But, Freedonia will consume the same amount of corn (30 units). Then, Freedonia have 30 available units to trade with Sylvania. And the same for Sylvania, they will consume the same amount of wheat (30 units) and so Sylvania will have 30 available units of wheat to trade with Freedonia.
If the price, for both goods, is the same, Ricardo´s theory predicts that total consumption in both countries will increase, then consumer welfare will increase. Freedonia will consume the same 30 units of corn, but the other 30 will be exchanged by 30 units of wheat. Consumers are better and happier. Freedonia will consume 20 units more of wheat than before without sacrifying units of corn.
Answer:
hey what kind of watch is that in your profile pic
Answer:
a. decrease
b. increase
c. increase
Explanation:
A call center has added a telephone line coming to its customer service department. The proportion of potential customer getting a busy line will decrease because now there is one additional line that can be used to serve caller. The average flow time experienced by customers will increase. Utilization of all the telephone lines shows the productivity of call center. The average utilization of customer service representative will increase because customer representative will have one more line to address the call by customers.
Break even analysis determines <span>what sales volume must be reached before the company's total revenue equals total costs and no profits are earned. It is the calculation of the point at which total revenue equals total cost. Break even analysis is helpful in letting businessmen know when their business will turn a profit so the prices of their goods or the amount of goods sold can be adjusted accordingly.</span>
Answer:
Equilibrium quantity: 145
Equilibrium price: $140
Explanation:
In order to find the answer, first we determine the current difference between quantity supplied and quantity demanded.
Quantity supplied - quantity demanded = difference
125 - 165 = -40
So we have a shortage of -40 units.
We have the information that a $1 increase in price increases supply by 2, and decreases demand by 2. Thus, in order to close the shortage, we need a $10 price increase, because this will raise supply by 20 units, and lower demand by 20 units as well, bringing the 40 gap to 0.
For this reason, the equilibrium quantity is 145 units, and the equilibrium price is $140.
