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trapecia [35]
2 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]2 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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Solnce55 [7]

The answer is: individual characteristics

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From markings and cuts and the sole, investigators could predict the general activities that usually done by the owner of the shoe. This would helped them identify the victim and help to unfold what happened to that victim when the crime occurred.

6 0
3 years ago
On January 1, Smith Industries leased equipment to a customer for a four-year period, at which time possession of the leased ass
KiRa [710]

Answer:

The amount of the annual lease payments is $98,124.

Explanation:

This can be calculated using the formula for calculating loan amortization as follows:

P = (A * (r * (1 + r)^n)) / (((1+r)^n) - 1) .................................... (1)

Where,

P = Annual lease payments = ?

A = Amount to be recovered through periodic lease payments = Equipment cost - Residual value = $425,000 - $100,000 = $325,000

r = interest rate = 8%, or 0.08

n = Number of years of lease term  = 4

Substituting all the figures into equation (1), we have:

P = ($325,000 * (0.08 * (1 + 0.08)^4)) / (((1+0.08)^4) - 1)

P = $98,124.2614475627

Rounding to the nearest whole dollar as required, we have:

P = $98,124

Therefore, the amount of the annual lease payments is $98,124.

4 0
2 years ago
Describe the shifts in the world economy over the past 30 years. What are the implications of these shifts for international bus
statuscvo [17]

Answer:

There has been a drastic change and shift in the world economy over the past 30 years.

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During the 1960s, there were four stylized facts that described the demographics of the global economy.

First, the U.S dominated the world economy and the world trade.

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Thirdly, was the dominance of large, multinational U.S companies in the international business scene.

Although, the U.S is still dominating world's economy, but it's share of world output and world's export has declined since 1960.

It doesn't spell doom for U.S economy but rather reveals the growth in industralization in developing and growing economies like China, South Korea, India, etc.

Shifts in the world economy can be spotted in the shifts in multinational enterprises.

Two major trends are found in the demographics of the multinational enterprises.

One is seen in the rise of non-U.S multinationals especially the Japanese multinationals.

Secondly, is the emergence of small and medium-sized multinationals.

These shifts are seen in the fall of the Communist in Eastern Europe and the republic of the former Soviet Union.

The implications of these trends are similar to U.S and Britain. These had been the big players in the international scene. But that has changed. To win orders, the U.S and Britain have to compete with competitors around the world.

There is great opportunities for companies in Hong Kong to seriously pursue export market due to the decline in the influence of the U.S and Britain in the world economy.

We can say that we are moving to a world where barriers to cross-border trade and investments are declining, perceived distances are being eliminated due to the advances in transportation and technology and national economies are merging into interdependent, integrated global economic system.

4 0
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Answer:

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Lil Beasty Company

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Income per unit ($19 – $18.50) $0.50

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Therefore we have increase $2,500 meaning If the offer is accepted with unused capacity, net income will increase by $2,500. The variable cost per unit will be $18.50 ($17 + $1.50); the income per unit is $.50 ($19 – $18.50); and the total increase in net income will be $2,500 ($.50 X 5,000 units)

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Answer:

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