1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vova2212 [387]
3 years ago
10

Assume France and Mali can both produce grain and dates, and that the only limited resource is the farming labor force, meaning

that land, water, and all other resources are plentiful in both countries.
Each farmer in France can produce 10 metric tons of grain or 5 metric tons of dates in a season. Each farmer in Mali can also produce 10 metric tons of grain or 25 metric tons of dates. Please answer the four questions below.
1. Which country has the absolute advantage in producing dates?
2. Which country has the absolute advantage in producing grain?
3. Which country has the competitive advantage in producing dates?
4. Which country has the comparative advantage in producing grain?
Business
1 answer:
soldi70 [24.7K]3 years ago
7 0

Answer:

In France:

Farmer can produce = 10 metric tons of grain or 5 metric tons of dates in a season

In Mali:

Farmer can produce = 10 metric tons of grain or 25 metric tons of dates.

(1) Mali has the absolute advantage in producing dates because Mali produces more metric tons of dates than France from the same level resources.

(2) No country has an absolute advantage in producing grain because same amount of grain were produced by both the countries with the same level of resources.

(3) Opportunity cost of dates in France = \frac{10}{5}

                                                                 = 2 grain

Opportunity cost of dates in Mali = \frac{10}{25}

                                                       = 0.4 grain  

Therefore, Mali's opportunity cost of producing dates is lower than France, so Mali has a comparative advantage in producing dates.

(4) Opportunity cost of grain in France =  \frac{5}{10}

                                                                = 0.5 dates

Opportunity cost of grain in Mali = \frac{25}{10}

                                                      = 2.5 dates

Therefore, France's opportunity cost of producing grains is lower than Mali, so France has a comparative advantage in producing grains.                                          

You might be interested in
If a firm borrows ​$8 comma 000 from households at an annual interest rate of 6 ​percent, how much will the firm pay in interest
laila [671]

Answer:

The firm will pay 480 dollars each year as interest payment.

Explanation:

The interest amount is calculated by multiplying the rate of interest with the amount borrowed. In problem loan is 8,000 dollars and rate of interest is 6%, so the interest amount will be calculated as follow

Interest payment = 8,000 * 6% = 480 dollars

8 0
3 years ago
Current cost to source from the home plant to Country A is $0.55 per unit, plus $0.02 in shipping (there is no tariff). If produ
Marianna [84]

Answer:

Cost savings in sourcing from Country A = $0.5 million ($57.5 - $57 million)

Explanation:

Sourcing from Country A:

Purchase price = $0.55 per unit

Shipping = $0.02

Total Cost = $0.57

Cost of 100 million units = $57 million

Sourcing from Country B:

Purchasing price = $0.44 ($0.55 x 80%)

Shipping = $0.06

CIF Tariff = 15% = $0.075  ($0.5 x 15%)

Total Cost = $0.575

Cost of 100 million units = $57.5 million

Sourcing from Country A is more beneficial than sourcing from Country B with reduced product cost, but increased shipping and additional tariff.  Whereas Country A gives a total cost for 100 million units of $57 million, sourcing the same units from Country B gives a total cost of $57.5 million.  The savings of $0.5 million is substantial that no company would like to lose unless the goods from Country B are of higher quality than those from Country A.

7 0
3 years ago
Northwest Catering owns and operates several restaurant services in Oregon, Washington, and Idaho. One restaurant chain has expe
Tcecarenko [31]

Answer:

1.3 million  Impaired asset is the determined amount

Explanation:

Asset impaired as the estimated fair value cash flows is lower than book value

Impairment loss = Fair value - Book value  

= 3.0 million - 4.3 million

= 1.3 million Impaired asset

An impaired asset is an asset that has a market value less than the value which was disclosed on the organisation balance sheet. When an asset is said to be impaired, it will need to be written down on the company's balance sheet to its current market value.

7 0
3 years ago
A company manufactures and sells x smartphones per week. The weekly price-demand and cost equations are p=500−0.5x and C(x)=20,0
suter [353]

Answer:

a)

revenue = x amount of phones x price

revenue = x(500 - 0.5x)

revenue = 500x - 0.5x²

we find revenue' (derivative):

revenue' = 500 - x

x = 500

the company should sell 500 smartphones to maximize revenue, the selling price = 500 - (0.5 x 500) = $250 per smartphone. Maximum weekly revenue = $250 x 500 = $125,000

b)

profit = revenue - cost

profit = 500x - 0.5x²  - 20,000 - 135x

profit = -0.5x² + 365x - 20,000

we must find profit' (derivative):

profit' = -x + 365

x = 365

In order to maximize profits, you have to sell 365 smartphones per week. Maximum weekly profit = -0.5(365²) + 365(365) - 20,000 = -66,612.50 + 133,225 - 20,000 = $46,612.50.

The smartphone's price = 500 - (0.5 x 365) = $317.50

4 0
2 years ago
____ is a way to minimize technical problems with your computer
KATRIN_1 [288]
Troubleshooting is a way to minimize technical problems with the computer.
6 0
2 years ago
Read 2 more answers
Other questions:
  • A statistician prepared a bar chart showing, in descending order, the frequency of six underlying causes of general aviation acc
    13·2 answers
  • Ironwood bank is offering a 30 ​-year mortgage with an APR of 6.00 % based on monthly compounding. if you plan to borrow $ 160,0
    14·1 answer
  • Smaller bags of items are generally priced lower per unit than larger bags.
    15·1 answer
  • Organizational effectiveness is a _________, meaning that it is created and defined by an individual or group rather than existi
    15·1 answer
  • What might be considered an example of a ruthless business tactic?
    7·1 answer
  • A partner's interest: a. is the same as the partnership property. b. cannot be attached by creditors. c. cannot be transferred.
    9·1 answer
  • However, Rina's decision regarding how many workers to use can vary from week to week because her workers tend to be students. E
    11·2 answers
  • The sticky-price theory helps explain what feature of the aggregate demand and aggregate supply model?
    10·1 answer
  • Lloyd and Jean are considering purchasing a home requiring a $75,000 mortgage. The payment on a 30-year mortgage for this amount
    9·1 answer
  • What is a stock dividend? and im not sure how to calcuate the monthly payment.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!