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trapecia [35]
3 years ago
10

Two friends, Rachel and Joey, enjoy baking bread and making apple pie. rachel takes 2 hours to bake a loaf of bread and 1 hour t

o make a pie. Joey takes 4 hours to bake a loaf of bread and 4 hours to make a pie. please calculate to opportunity cost of baking bread for both rachel and joey. (teacher recommendsusing 4 hour blocks)
1. Who has the absolute advantage in baking bread?
2. Who has the comparative advantage?
3. Who should specialize in bread?
4. Who should specialize in pie?
Business
1 answer:
arsen [322]3 years ago
8 0

Answer:

(i) Rachel

(ii) Joey in producing bread and Rachel in producing pie.

(iii) Joey

(iv) Rachel

Explanation:

Rachel can produce 24 pies or 12 loaves of bread in a day.

so that her opportunity cost of bread = 24/12

                                                              = 2 pies

opportunity cost of pie = 12/24

                                      = 0.5 loaf of bread

Joey can produce 6 pies or 6 loaves of bread in a day.

Joey’s opportunity cost of baking bread is similarly = 6/6

                                                                                      = 1 pies

opportunity cost of pie = 6/6

                                      = 1 loaf of bread

1. Rachel have an absolute advantage in baking bread as she is producing a loaf of bread with fewer resources.

2. Joey has an comparative advantage in producing bread as the opportunity cost of producing bread is lower for Joey than Rachel and Rachel has an comparative advantage in producing pie as the opportunity cost of producing it is lower than Joey.

3. Joey is specialize in bread.

4. Rachel is specializing in pie.

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the difference of $1,400 ($199,000-$197,600) will now be noted in the books of Don Co as an exchange gain on the transaction.

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Answer and Explanation:

The preparation of the differential analysis is presented below:

<u>Particulars   Lease Machinery Sell Machinery Differential Effect on Income </u>

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Explanation:

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2 years ago
Answer the question on the assumption that the legal reserve ratio is 20 percent. suppose that the fed sells $500 of government
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The sale and purchase of government securities by the Fed would leave reserves unchanged.

<h3>What is the effect of the purchase and sale of government securities?</h3>

The Fed is the Central Bank of the United States. One of the duties of the Fed is to conduct monetary policies. Monetary polices are used to affect the level of money supply in the economy.

One of the monetary policy tools of the Fed is open market operation. When the Fed sells government securities, it is known as an open market sales which reduce money supply. When the Fed buys government securities, it is known as an open market purchase which increases money supply.

Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves. Reserve ratio is determined by the Fed.

Change in reserve = (  value of government securities bought / reserve ratio) - (value of government securities sold / reserve ratio)

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To learn more about reserve ratio, please check: brainly.com/question/6831267

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7 0
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mike is walking down the street minding his own business when he is stopped by a police officer. although no crimes have been re
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Answer:

The correct answer is a. an illegal search under 4th amendment protections.

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The fourth amendment to the United States Constitution protects two fundamental rights: the right to privacy and the right not to suffer an arbitrary invasion.

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