Answer:
His risk profile.
Explanation:
When comparing various option , Sergio must understand his risk profile and choose the option according to it.
Answer:
Based on the answer to the question, the only one of the given terms of trade (that is, price of stained glass in terms of jeans) that would allow both Sweden and Italy to gain from trade is 8 pairs of jeans per pane of stained glass because 8 pairs is more than 4 pairs, which will be attractive to ITALY and is less than 10 pairs which is a cheaper cost for SWEDEN.
Explanation:
1. Italy's opportunity cost of producing a pane of stained glass is 4 pairs of jeans while Sweden's opportunity cost of producing a pane of stained glass is 10 pairs of jeans
2. By comparing the opportunity cost of producing stained glass in the two countries, you can tell that SWEDEN has a comparative advantage in the production of stained glass and ITALY has a comparative advantage in the production of jeans.
3. Suppose that Italy and Sweden consider trading stained glass and jeans with each other. Italy can gain from specialization and trade as long as it receives more than <u>4 Pairs </u>of jeans for each pane of stained glass it exports to Sweden. Similarly, Sweden can gain from trade as long as it receives more than 0.1 pair of stained glass for each pair of jeans it exports to Italy.
4.Based on the answer to the last question, the only one of the given terms of trade (that is, price of stained glass in terms of jeans) that would allow both Sweden and Italy to gain from trade is 8 pairs of jeans per pane of stained glass because 8 pairs is more than 4 pairs, which will be attractive to ITALY and is less than 10 pairs which is a cheaper cost for SWEDEN.
Refer to the Numder of this question add with the second number hope this helps.
Answer:
It would be wiser for the couple to stay in the old apartment and save $1400
Explanation:
If they stay until the end of the lease, total money that will be paid out is $1000 x 6 = $6000,
If they leave, they'll have to forgo $1000.
If they move to their new apartment, they'll pay $900 x 6 = $5400
total expenditure if they move to the new place at the end of the six months period will be, the $1000 that will not be refunded back to them on the old apartment, plus this new $5600 for six month's rent in this new apartment, and that will be a total of $6400.
It would be wiser for the couple to stay in the old apartment and save $1400
