Answer:
a) see attached image
b) Atlantis's opportunity cost of producing one helmet = 200 / 100 = 2 baseballs
c and d) Atlantis's opportunity cost of producing one baseball = 100 / 200 = 0.5 helmets
Zanadu's opportunity cost of producing one baseball = 100 / 400 = 0.25 helmets ⇒ Zanadu has a comparative and absolute advantage in the production of baseballs
e) yes, Atlantis would produce 100 helmets, and if it trades 50 to Zanadu, it will get 150 baseballs in return. So it will gain from trade. If Zanadu produces 400 baseballs and trades 150 of them for 50 helmets, it will also benefit.
Explanation:
Answer: Raises the CPI and reduces real income.
Explanation:
Inflation is a sustained rise in the general price level of the goods and services in an economy during a particular period. It is usually expressed as a percentage. Inflation leads to a reduction in the purchasing power of a country's currency.
Real income reduces because a rise in the price level with nominal income constant reduces the purchasing power of money. People holding real assets are better off than people who are holding cash.
It should be not allowed as that can cause a lot of conflict
Answer:
a. $16,500
Explanation:
The computation of the total amount of fixed manufacturing cost is shown below;
= Number of units sold & produced × fixed manufacturing overhead per unit
= 5,000 units × $3.30
= $16,500
Hence, the correct option is a.
Answer:
A) Joint Venture
Explanation:
Based on the scenario being described within the question it can be said that in this context, Cream Bite Inc. is a Joint Venture. This is a business term that refers to an arrangement between two parties in which both combine their resources in order to meet an agreed upon goal in a more efficient manner and in a much smaller time-frame than if they were to do it separately.
