1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Yuri [45]
3 years ago
15

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

arties. It takes Sam 12 hours to prepare the food for an event and 3 hours of effort to get each new client. For Lisa, it takes 10 hours to prepare food for an event and 5 hours to get a new client.
In this scenario,_________ advantage in food preparation has an absolute advantage in food preparation, and________has a comparative
Assume that initially, Sam and Lisa 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, and the other person will use the freed-up time 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:
igomit [66]3 years ago
7 0

Answer:

In this scenario, <u>LISA</u> has both an absolute advantage in food preparation, and <u>LISA</u> has a comparative advantage in food preparation.

Assume that initially, Sam and Lisa 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, and the other person will use the freed-up time 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 <u>1</u>.

Before they were getting 3 new customers since Sam got 2 and Lisa 1, but since Sam will only look for clients, then the total number of clients will be 4 (or 1 more).

Explanation:

It takes Sam 12 hours to prepare the food for an event and 3 hours of effort to get each new client.

  • Sam's opportunity cost of preparing food = 12/3 = 4 new clients
  • Sam's opportunity cost of getting new clients = 3/12 = 0.25 of food preparation

For Lisa, it takes 10 hours to prepare food for an event and 5 hours to get a new client.

  • Lisa's opportunity cost of preparing food = 10/5 = 2 new clients
  • Lisa's opportunity cost of getting new clients = 5/10 = 0.5 of food preparation
You might be interested in
If these patterns hold for decreases as well as for increases, by how much would the value of the financial securities decline i
Ratling [72]

Answer:

$115.20

Explanation:

Missing part is <em>"Assume that securitization combined with borrowing and irrational exuberance in Hyperville have driven up the value of existing financial securities at a geometric rate, specifically from $4 to $8 to $16 to $32 to $64 to $128 over a six-year time period. Over the same period, the value of the assets underlying the securities rose at an arithmetic rate from $4 to $6 to $8 to $10 to $12 to $14."</em>

<em />

If the underlying assets price fall by $10, then the securities value will fall by a ratio of $10

Value of securities = $128/$10 = $12.80

Decline in value of securities = $128 - $12.80 = $115.20. Thus, the Decline in value of the financial securities is $115.20

5 0
3 years ago
Strong economic growth since 1960 has allowed nations like Singapore and Ireland to surpass nations such as the United Kingdom a
djyliett [7]

Answer:

A. True.

Explanation:

Making a comparison among countries of GDP per capita and Ireland and Singapore show higher values than the United Kingdom and France and this is because these two countries have experienced long periods of rapid growth with ratas higher than growth population. The United Kingdom and France, as mature economies economically growth also, but at a lower rate

3 0
3 years ago
1. In each of the following situations, identify which of the twelve principles is at work
aleksklad [387]

Answer:

a. The true cost of something in its cost of opportunity

Explanation:

Opportunity cost is the cost which is defined as the cost or expense of one item which is lost in order to get the opportunity to do or to consume something else. In simple words, it is the value or the cost of the next best available alternative.

So, when the person select to bought the textbooks through Chegg instead paying the higher price for the same books through the bookstore. Under this situation, the principle applies is the cost of something in its opportunity cost.

8 0
3 years ago
A toy company creates a new toy that suddenly become very popular. The toys in the stores sell out immediately, and the factorie
shtirl [24]
Your answer would be B. The price will go up because supply is low.
3 0
3 years ago
Which of the following statements is correct? Group of answer choices The normal balance of revenue is a debit. The normal balan
kaheart [24]

Answer:

The normal balance of liabilities is a credit.

Explanation:

In the double entry system one account must be debited in order for the other to be credited.

There are different balances for each account. For the accounts with normal credit balance a credit causes it to increase while a debit decreases it.

For accounts with negative balance a credit reduces its balance while a debit increases its balance.

- Asset: Debit

- Expense: Debit

- Dividends: Debit

- Liability: Credit

- Owner’s Equity: Credit

- Revenue: Credit

- Retained Earnings: Credit

Liabilities are debt owed by a business. When payment is given out to settle a debt (a debit) it reduces to amount a business owes.

If more loans are collected (a credit) the liability figure increases.

So liability has a normal credit balance

5 0
3 years ago
Other questions:
  • Why do companies lower product prices and offer free samples?
    5·2 answers
  • In order to deal with the financial problems inherent to the current Social Security system, President Waldhart proposes that an
    13·1 answer
  • Suppose the corporate tax rate is 35%. Consider a firm that earns $10,000 before interest and taxes each year with no risk. The
    15·1 answer
  • It is blank for motorcycles to pass between cars in the middle of traffic lanes
    5·1 answer
  • Which type of identity theft occurs when a thief uses someone else's identity to commit a crime?
    7·2 answers
  • In the market for desk lamps, which of the following will increase demand? Choose one or more: A. If desks are a complementary g
    6·1 answer
  • Jake takes out a payday loan of $300. In two weeks, he doesn't have the money to repay it in full. What is one way that Jake can
    7·1 answer
  • Ketchup is a complement (as well as a condiment) for hot dogs. If the price of hot dogs rises, the quantity of hot dogs demanded
    6·1 answer
  • Nicole’s Getaway Spa (NGS) purchased a hydrotherapy tub system to add to the wellness programs at NGS. The machine was purchased
    12·1 answer
  • 1988
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!