Answer:
1) country A has a comparative advantage in production of capital goods.
2) for country A 24 units of food can be traded for 10 units of capital goods,
for country B 30 units of food can be traded for 10 units of capital goods.
Explanation:
country A has a comparative advantage in production of capital goods because they have been able to produce more capital goods with the same amount of input (worker) than country B.
For country A, 120 units of food = 50 units of capital goods, therefore
10 units of capital good will be traded for (120 x 10)/50 = 24 units of food.
for country B 90 units of food is equivalent to 30 units of capital goods, therefore,
(90 x 10)/30 = 30 units of food
Answer:
i think d is the correct answer
Answer:
The answer is: A) Forward vertical integration (FVI)
Explanation:
FVI takes place when a company expands its business activities to take direct control of the distribution of their products.
The question is a textbook example of FVI. A company decides to sell their products directly to their customers bypassing the middlemen.
Internet sales are giving several companies this opportunity. For instance, every once in a while I get promotions directly from the Coca Cola Company offering me direct discounts on their products. Of course some type of courier or logistics company is needed, but the sale is made directly from the distributor bypassing the grocery store. A more common example is people buying their cars directly in the manufacturers website. In Germany, car vending machines are located right next to the factories. You buy online and you pick your car like a soda can, only on a huge scale.
Answer:
0.4
Explanation:
Given that,
Convenience store advertises 50% off frozen slushies: This means that the price of slushies decreases by 50%.
20% Fewer sales of fountain drinks: This means that the quantity demanded of fountain drink decreases by 20%.
Percentage change in the price of slushies = 50%
Percentage change in the quantity demanded of fountain drink = 20%
Cross price elasticity measures the responsiveness of quantity demanded for one good to any change in the price level of the other good.
Therefore, the cross elasticity between slushies and fountain drinks is as follows:
= Percentage change in the quantity demanded of fountain drink ÷ Percentage change in the price of slushies
= 20 ÷ 50
= 0.4
Therefore, the positive cross price elasticity indicates that these are the substitute goods.