All categories

3 years ago

MICROECONOMICS Assignment. ANYONE WHO CAN COMPLETE THIS OR HELP ME WITH HOW TO DO IT ON MY OWN. It would be greatly appreciated.

Business

1 answer:

Vinil7 [7]3 years ago

4 0

So this question is too complicated for a forum like this to answer all parts.

I can help with a few of the first ones.

A. To figure opportunity costs, you find the ratio between producing all wine versus producing all butter.

In this case Germany: if Germany only produces wine they make 300 units. If they only make butter they make 1200 units. So the opportunity costs would be 1200/300 or 4. For every one unit of wine, you give up 4 units of butter.

B. Absolute advantage is the country the can produce the most units overall.

C. Comparative advantage is the country that has the capability of producing the most of one specific product. I.E. who can produce the most butter or wine.

D. I cannot draw that here.

E. I would rethink the answer on your sheet. Think about the above example of opportunity cost. Is it worth Tom Brady giving up time thinking about football to mow his lawn? How much opportunity cost would be there?

You might be interested in

Your medical group wants to expand by starting a new venture, owning and operating a pharmacy. In order to increase the chances

kolezko [41]

Explanation:

The opening of any business is subject to potential risks, so it is necessary for new entrepreneurs to maintain a proactive stance so that organizational practices and processes are effectively aligned to prevent risks. That's why it's important to know the market you're going to be in, as well as risk and opportunity management to guide your business to success.

Some potential <u>risks </u>in opening a pharmacy would be:

Product Risk: The products that will be marketed must be carefully selected and in accordance with the quality and safety parameters, especially when it comes to the sale of medicines, which presents greater care in marketing.

Market risk: A company only progresses if it has market to operate. A new business should consider whether it will be able to deliver a quality product with customer benefits compared to its competitors.

Supplier Risk: Choosing good suppliers is essential to organizational success. In the pharmaceutical industry it is necessary to choose good and reliable laboratories so that there is no risk of obtaining unsafe medicines for human health.

But in addition to risks, <u>opportunities </u>must also be considered when opening a new business. In this case they can be:

Market Opportunity: A pharmacy is a business that not only sells medicines, there may be increased profitability by selling non-durable goods such as food, beverages and beauty products, widely consumed by various types of consumers.

Reputation Opportunity: Because it is a pharmacy formed by a medical group, the reputation and image to the consumer can be enhanced, which creates greater security in choosing to buy a drug in your establishment.

Branding opportunity: A company that markets private label products ensures benefits such as consumer confidence and increased profitability by marketing low cost manufacturing products to the company.

3 0

3 years ago

In the U.S., cash takes which two forms

Natali5045456 [20]

its takes the form of paper money and coins

4 0

3 years ago

When Sears decided to enter Mexico with its retail facilities. Its strategy was to engage in contractual agreements with qualifi

ruslelena [56]

Answer: Contract manufacturing

Explanation:

The contract manufacturing is the process of production of various types of products and the services in an organization on the contractual basis and it is one of the form of outsourcing process.

When the contract manufacturer perform the packaging operation of the products in an organization then, it is known as the contract packager.

The contract manufacturing is also sometimes known as the private label manufacturing because some manufacturer provide the products and the services according to their own design and the specification.

Therefore, contract manufacturing is one of the example that best illustrate the given scenario for entering in the foreign market.

4 0

3 years ago

When studying abroad last year, Blake found that his U.S. dollars did not stretch as far as he had hoped. Each time he exchanged

rewona [7]

Answer:

C. the euro has gained strength against the dollar.

Explanation:

If Blake gives up more U.S. dollars in exchange for less euros every time, this means that the exchange rate is increasing. The exchange rate is the price of a currency in exchange for another. So, if the price is increasing that means that euro is getting stronger than dollars, which is contrary to affirmation A and B, but is affirmation C. This could be because the demand for euro is stronger than the demand for dollars, which is contrary to affirmation D.

5 0

3 years ago

A firm is considering moving its manufacturing plant from Chicago to a new location. The industrial engineering department was a

7nadin3 [17]

Answer:

City 2% 10% 20% 30% 50% 100%

Denver 80.93 -22.58 -100.47 -147.92 -200.06 -248.20

Dallas 453.59 180.88 -24.31 -149.32 -286.69 -413.54

SanAntonio 407.08 174.19 -1.05 -107.81 -225.13 -333.46

LosAngeles 473.36 140.93 -109.19 -261.57 -429.03 -583.65

Cleveland -18.14 -53.97 -80.93 -97.36 -115.40 -132.07

Atlanta 158.95 61.41 -11.98 -56.69 -105.82 -151.19

Chicago 0.00 0.00 0.00 0.00 0.00 0.00

b) The manufacturing plant should be located in Dallas (IRR=19%).

Explanation:

We have the cost and uniform annual benefits for each city:

Plant Location First Cost ($000s) Uniform Annual Benefit($000s)

Denver 300 52

Dallas 550 137

San Antonio 450 117

Los Angeles 750 167

Cleveland 150 18

Atlanta 200 49

Chicago 0 0

The cash flow can be written as:

$NPV=-I_0+CF[\frac{1-(1+i)^{-8})}{i}]=-I_0+CF\cdot A$

where:

I0: first cost.

CF: uniform annual benefit

i: discount rate

A: annuity factor

The annuity factor that multiplies the CF is equal for every city, so it can be calculated beforehand:

$A=\frac{1-(1+i)^{-8})}{i}$

For some rate of returns, we have:

r=2% A=7.33

r=10% A=5.33

r=20% A=3.84

r=30% A=2.92

r=50% A=1.92

r=100% A=1.00

a) Then, for each city, we have this NPV, in function of differents discount rates:

City 2% 10% 20% 30% 50% 100%

Denver 80.93 -22.58 -100.47 -147.92 -200.06 -248.20

Dallas 453.59 180.88 -24.31 -149.32 -286.69 -413.54

SanAntonio 407.08 174.19 -1.05 -107.81 -225.13 -333.46

LosAngeles 473.36 140.93 -109.19 -261.57 -429.03 -583.65

Cleveland -18.14 -53.97 -80.93 -97.36 -115.40 -132.07

Atlanta 158.95 61.41 -11.98 -56.69 -105.82 -151.19

Chicago 0.00 0.00 0.00 0.00 0.00 0.00

b) The firm uses a 10% annual interest. For this situation, we can look up in the table from the previos question and see that Dallas has the higher NPV at this discount rate.

So the manufacturing plant should be located in Dallas.

(NOTE: the IRR of the project relocating to Dallas is 19%)

7 0

3 years ago