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Feliz [49]
3 years ago
10

Suppose workers in Freecia can produce two bushels of rice with the same amount of effort it takes them to produce one memory ch

ip. Workers in Warmia can produce five bushels of rice with the same effort it takes them to produce two memory chips. Which of the following must be true?
A) Warmia has a comparative advantage in producing memory chips.
B) Warmia has an absolute advantage in producing memorychips.
C) Freecia has a comparative advantage in producing memory chips.
D) Freecia has an absolute advantage in producing memory chips
Business
1 answer:
Reika [66]3 years ago
8 0

Answer:

Freecia has a comparative advantage in producing memory chips

Explanation:

Comparative advantage occurs when a company has an advantage over the other through the production of certain goods at a cheaper rate.

Looking at the given example , let us assume that the cost of producing a bushel of rice is $10 and memory chips is $10

Warmia produces two bushels of rice at $70 and a memory chip at $70(ratio 2:1) 1/3*70= 23.3

Freecia produces five bushels of rice at $70 and two memory chips at $7

(Ratio 5:2). 2/7*70=14

We can see that the cost of producing memory chips is cheaper fo Freecia

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Answer:

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The main advantage of having uniform rules (e.g. UCC) is that all the companies know exactly what to expect and how to act. Certainty decreases risk, and less risk reduces costs.

Explanation:

In the US, the vast majority of firms use US GAAP as their accounting method, but around the world the IFRS method is used.

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Answer:

Please see attachment

Explanation:

Please see attachment

Download pdf
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