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e-lub [12.9K]
3 years ago
14

Argentina can produce either 20 units of cloth or 2 units of wine, while Chile can produce either 24 units of cloth or 12 units

of wine. If each country specializes in the good for which it has comparative advantage, the total output by the two countries will be:
Business
1 answer:
Olenka [21]3 years ago
7 0

Answer:

Their combined production should be 20 clothes and 12 wines.

Explanation:

<u>Argentina's opportunity cost to produce 1 unit of cloth = 0.1 wine</u>

Argentina's opportunity cost to produce 1 unit of wine = 10 clothes

Chile's opportunity cost to produce 1 unit of cloth = 0.5 wine

<u>Chile's opportunity cost to produce 1 unit of wine = 2 clothes</u>

Since Argentina' opportunity cost to produce clothes is lower, then it should specialize int he production of clothes. While Chile should specialize in the production of wine. Their combined production should be 20 clothes and 12 wines.

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Air Destinations issues bonds due in 10 years with a stated interest rate of 11% and a face value of $500,000. Interest payments
olga nikolaevna [1]

Answer: $471,324.61

Explanation:

Price of a bond = Present value of coupon payments + Present value of face value at maturity

Coupon payments = 500,000 * 11% * 1/2 years = $27,500

Periodic yield = 12%/ 2 = 6% per semi annual period

Periods = 10 * 2 = 20 semi annual periods

Coupon payment is constant so it is an annuity.

Price of bond = Present value of annuity + Present value of face value at maturity

= (Annuity * Present value interest factor of Annuity, 6%, 20 years) + Face value / (1 + rate) ^ number of periods

= (27,500 * 11.4699) + 500,000 / (1 + 6%)²⁰

= $471,324.61

8 0
3 years ago
In order to realize the strongest competitive advantage, firms engaged in worldwide competition must:_____.
m_a_m_a [10]

In order to realize the strongest competitive advantage, firms engaged in worldwide competition must C.<u> pursue a </u><u>strategy</u><u> that combines the uniformity of a global strategy and the specificity of a multidomestic strategy in order to achieve optimal results.</u>

<u />

Strategy is an movement that managers take to gain one or greater of the organization's desires. The strategy also can be defined as “A trendy course set for the company and its various components to acquire the desired country within the destiny. approach effects from the precise strategic planning procedure”.

A tactic refers to the particular moves taken to reach the set desires in line with the method. for example, enterprise A's method is probably to end up the cheapest issuer within the cellphone marketplace. Their managers then want to negotiate with suppliers to lessen the costs of the electronic components used in production.

Strategy is a standard plan to reap one or extra long-time period or normal desires under conditions of uncertainty.

Learn more about the strategy here: brainly.com/question/24769299

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6 0
2 years ago
Currently, it is not clear which, if any, laws apply to the security of e-money payment information.
Free_Kalibri [48]
I'm pretty that would be: A.) True.
5 0
3 years ago
If a war destroys a large portion of a country's capital stock but the saving rate is unchanged, the Solow model predicts that o
Ksenya-84 [330]

Answer:

B) the same level of output per person as before.

Explanation:

In the Solow growth model, the economy reaches a steady state level of capital regardless of the starting level of capital. This steady state occurs when capital per worker is constant. Therefore after the war, the level of output should return to its normal level since the savings rate is constant and hasn't changed. This model assumes that a constant fraction of capital will always wear out, increasing the capital-labor ratio, therefore the population must grow or new technologies must be introduced to reach the steady state.

6 0
3 years ago
An artisan who creates customized furniture has a customer who is interested in purchasing several pieces of furniture. The arti
koban [17]

Answer:

2) Set the price of each piece of furniture equal to the marginal cost of producing it.

Explanation:

What happens in two-part tariff is that the producer recovers the entire cost of producing by charging price equal to the marginal cost.

This helps him recover cost and the entire fee the producer charges results in profits eventually. Hence, the profits is the consumer 'surplus' that we calculate given that the price of product is equal to marginal cost.

So answer here is 2- Set the price of each piece of furniture equal to the marginal cost of producing it.

8 0
4 years ago
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