Answer:
The answer is comparative advantage.
Explanation:
Comparative advantage is when a country is able to produce goods and services at a lower opportunity cost than its trading partners. That means a labour can produce more goods per hour than a labour in its trading partner's country.
A country with a comparative advantage will be able to charge lower price for what she is specialising on.
The price and quantity of computers that should be produced to maximize the firm’s profits will be $360 and 80 computers.
The demand curve for College Computers is given as (Q) = 800 - 2P where, P = 400 - 0.5Q.
Therefore, the weekly total revenue will be:
= (400 - 0.5Q) × Q
= 400Q - 05Q²
Marginal revenue = 400 - Q
Weekly cost of producing computers will be:
= 1200 + 2Q²
Marginal cost = 4Q
Maximum profit will b earned when MR = MC
Therefore, 400 - Q = 4Q
Collect like terms
4Q + Q = 400
5Q = 400
Q = 400/5
Q = 80
Quantity = 80 units
Therefore, the price will be:
P = 400 - 0.5Q
P = 400 - 0.5(80)
P = 400 - 40.
P = 360
The price is $360.
The weekly total revenue will be:
TR = price × quantity.
TR = 360 × 80
TR = $28800
The total cost will be:
TC = 1200 + 2(80)²
TC = 1200 + 12800
TC = 14000
Therefore, the profit will be:
= TR - TC
= $28800 - $14000
= $14800
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Answer:
Explanation:
1. Hilary's father in Sweden orders a bottle of Vermont maple syrup from the producer's website: included in U.S exports (X) account because it produced in the U.S soil.
2. Hilary gets a new video camera made in the United States: included in Consumption (C) account.
3. Edison's employer upgrades all of its computer systems using U.S.-made parts: included in the Investment (I) account because it is capital expenditure.
4.The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore: included in government purchases (G) account because Pennsylvania repaves are paid by the state of Pennsylvania.
5 .Edison buys a sweater made in Guatemala: included in Imports (M) account because it is consumed in U.S soil but not produced there.
Answer:
D
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
Profit is maximised where marginal cost equals marginal revenue.
