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Vlada [557]
3 years ago
12

Sam and Teresa run a catering business in which they have two major tasks: getting new clients and preparing food for events and

parties. It takes Sam 10 hours to prepare the food for an event and 5 hours of effort to get each new client. For Teresa, it takes 12 hours to prepare food for an event and 3 hours to get a new client. In this scenario, has an absolute advantage in food preparation, and has a comparative advantage in food preparation. Suppose that initially, Sam and Teresa are splitting both tasks for a large number of events. Then they decide to start shifting some work according to the principle of comparative advantage. In particular, the person with the comparative advantage in food preparation will take over preparing food for one more event by taking the necessary time away from getting more clients, and the other person will use the freed-up time from not preparing food for one event to get more clients. As a result, the total number of events for which food is prepared will remain unchanged, but the number of new clients will increase by .
Business
1 answer:
Sergio [31]3 years ago
8 0

Answer:

The number of new clients will increase by

12/3 = 4

Therefore, the number of new clients will increase by 4.

Explanation:

In getting new client, Sam takes 5hours, while Terasa takes 3hours.

In preparing food, Sam takes 10hours while Teresa takes 12hours.

It can be seen that Sam has absolute advantage and comparative advantage in preparation of food, while Tesesa has absolute advantage and comparative advantage in getting new client.

Sam with the comparative advantage in food preparation will take over preparing food for one more event by taking the necessary time away from getting more clients, and Teresa will use the freed-up time from not preparing food for one event to get more clients.

Teresa will free up 12hours she used in the preparation of food.

Since she use 3hours to get new client, She will get

12/3, which equals 4 number of clients

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2 years ago
Phil Graves Cemetery had 63,000 shares of common stock issued and outstanding at January 1, 2021. During 2021, Graves took the f
Whitepunk [10]

Answer:

Dividends for the year $63,000

Explanation:

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7 0
2 years ago
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Explanation:

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Since it's only probably that a loss will be Incurred by the firm by going into the contract and the financial statement has not been issue the firm should made a contingent liability disclosure in the report.

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6 0
3 years ago
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Answer:

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2. Willing to pay $39 for sweater, purchased it for $32 : It illustrates 'Consumer Surplus' case = $7 , as it shows difference between maximum willingness to pay by buyer ($39) & the actual buy price ($32)

3. Willing to sell laptop at $190, sold it at $199 : It illustrates 'Producer Surplus' case = $9 , as it shows difference between minimum willingness to sell price ($190) &  actual sale price ($199)

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