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Advocard [28]
3 years ago
9

Suppose there are two individuals, Casey and Rick, who live in a very simplified world where only two goods are produced and con

sumed: steak and potatoes. The production opportunity cost for Casey is 5.00 kg of steak for every kilogram of potatoes. Rick has a production opportunity cost of 3.00 kg of steak for every kilogram of potatoes. Casey eventually realizes that, through trade, both individuals can be better off. Rick is willing to trade. What price can be settled between these two parties such that both individuals can enjoy more steak and potatoes
Business
1 answer:
Maksim231197 [3]3 years ago
4 0

Answer:

Casey's opportunity cost of producing 1 kg of potatoes is 5 kg of steak.

Casey's opportunity cost of producing 1 kg of steak is 0.2 kg of potatoes.

Rick's opportunity cost of producing 1 kg of potatoes is 3 kg of steak.

Rick's opportunity cost of producing 1 kg of steak is 0.33 kg of potatoes.

Casey should produce steak while Rick should produce potatoes, since Rick has a comparative advantage in producing potatoes (lower opportunity cost) and Casey has a comparative advantage in producing steak.

As long as the price of steak per kilogram of potatoes is less than 5 kg of steak and more than 3 kg of steak, then both would win. In order for both of them to win is a similarly proportional way, the exchange price should be 4 kg of steak per kg of potatoes.

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3 years ago
Manufacturing costs from a scraped poor-quality product are $6000 per year. AN investment in an employee training program can re
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Answer:

We see that Prog A will give an annual CF of 75%*$6000 = $4500

Prog B will give annual CF of 95%*$6000 = $5700

Disc Rate Kd = 20%

So PV of Annuity of $1 for 5 yrs with Kd = 20% is 2.9906

So NPV of Prog A = CF0+CF1+ ....+Cf5 = -12000+2.9906*4500 = $1,458

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3 years ago
What is the most important reason financial information is provided by the major regulatory agencies to investors, depositors, a
sergij07 [2.7K]

Answer:

d. to make informed decisions about Banks and their financial condition.

Explanation:

Financial regulatory agencies are saddled with the responsibility of providing financial supervision and regulations to Banks and financial institutions. They also maintain integrity in the financial system inorder to boost the confidence of investors, creditors, depositors and the general public.

However, one of the major reasons why financial information is provided by the regulatory agencies to investor, creditors and depositors is to make informed decisions about Banks and their financial conditions.

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When you purchase an item from Globus Corp., they place the item in a paper bag with handles and vertical yellow, blue, and whit
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The bag's coloring and design are considered its trade dress.

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Therefore, the bag's coloring and design are considered its trade dress.

Know more about trademarks here:

brainly.com/question/11957410

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