All categories

3 years ago

Berries Fish

Business

1 answer:

gavmur [86]3 years ago

4 0

Answer:

B. Bill has an absolute advantage in picking berries and Rob has an absolute advantage in catching fish.

D. Bill has a comparative advantage in picking berries.

Explanation:

A person has comparative advantage in production if it produces at a lower opportunity cost when compared with other people.

A person has absolute advantage in the production of a good or service If it produces more quantity of the good when compared with other people.

Rob picks 20 berries while bill picks 30. This indicates that Bill has an absolute advantage in picking berries.

Rob catches 80 fish while bill catches 60 fish. This indicates that rob has an absolute advantage in catching fish.

To determine comparative advantage, the opportunity costs have to be determined.

The opportunity cost of Rob in picking berries = 80 / 20 = 4

The opportunity cost of Rob in catching fish = 20 / 80 = 0.25

The opportunity cost of Bill in picking berries = 60 / 30 = 2

The opportunity cost of Bill in catching fish = 30 / 60 = 0.5

Bill has a comparative advantage in picking berries because his opportunity cost is lower.

Rob has a has a comparative advantage in catching fish because his opportunity cost is lower.

I hope my answer helps you

You might be interested in

The district director of 5 mortgage origination offices staffed by bank associates who cold call potential customers in an attem

Artist 52 [7]

Answer:

Revenue Centre

Explanation:

Revenue Centre is that division or department of the firm which generate or create revenue through sale of the goods and the services. The district director who is managing the 5 mortgage origination offices that is staffed by the bank associates. So, most likely responsible for a revenue centre of the business. And who works for revenue centre is only responsible or accountable for the revenue only.

4 0

3 years ago

On January 1, 2021, Hoosier Company purchased $940,000 of 10% bonds at face value. The bond market value was $985,000 on Decembe

qaws [65]

Answer:

Dr Bonds 940,000

Cr Cash 940,000

Dr Fair Value adjustment 45,000

Cr Net Unrealized holding gains & losses 45,000

Dr Fair Value adjustment 45,000

Cr Net Unrealized holding gains & Losses 45,000

Dr Investment in bonds 985,000

Cr Discount on bond investment 45,000

Cr Cash 940,000

Explanation:

Hoosier Company Journal entries

Dr Bonds 940,000

Cr Cash 940,000

Dr Fair Value adjustment 45,000

($985,000-$940,000)

Cr Net Unrealized holding gains & losses 45,000

Dr Fair Value adjustment 45,000

Cr Net Unrealized holding gains & Losses 45,000

Dr Investment in bonds 985,000

Cr Discount on bond investment 45,000

Cr Cash 940,000

8 0

4 years ago

Comet Company is owned equally by Pat and his sister Pam, each of whom hold 100 shares in the company. Comet redeems 50 of Pam's

forsale [732]

Answer:

Comet's E&P will decrease by $50,000 due to the exchange.

Explanation:

50 of Pam's shares are worth 50 x $1,000 = $50,000, since the corporation is redeeming them, it will do so by decreasing its earnings and profits (retained earnings account).

Generally when larger corporations buy back stocks (AKA treasury stocks), they will credit cash and debit treasury stocks, but since Pam's stocks are being retired, they are not going to be held as treasury stocks, therefore E&P must decrease.

6 0

3 years ago

The amount of accounts receivable that is actually expected to be collected is known as the:a.uncollectible accounts expense. b.

scoundrel [369]

Answer:

Net realizable value.....Option C

3 0

3 years ago

Suppose housing prices and stock prices decline significantly and cause autonomous consumption spending to decrease by $200 bill

kirill [66]

Answer: The change will be $400 billion.

Explanation: The marginal propensity to consume (MPC) is used to explain that increase in consumption is as a result of increase in income.

To calculate how much the equilibrium real GDP will change:

STEP1: CALCULATE THE MULTIPLIERS

multipliers = 1 ÷ (1 - MPC)

Where MPC = 0.

Therefore;

Multipliers = 1 ÷ (1 - 0.5) = 1 ÷ 0.5

Multipliers = 2

STEP 2: CALCULATE HOW MUCH THE EQUILIBRIUM REAL GDP WILL CHANGE;

Multipliers × change in consumption spending

2 × $200 billion = $400 billion

Equilibrium real GDP will change with $400 billion

4 0

4 years ago