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Alex17521 [72]
2 years ago
7

Develop an arithmetic example that illustrates how a nation could have an absolute disadvantage in the production of two goods a

nd still have a comparative advantage in the production of one of them.
Assume that by devoting all of its resources to the production of steel, France can product 40 tons. By devoting all of its resources to televisions, France can produce 60 televisions. Comparable figures for Japan are 20 tons of steel and 10 televisions. In this example, France has an absolute advantage in the production of steel and televisions. France has a comparative advantage in televisions.
Business
1 answer:
zaharov [31]2 years ago
6 0

Answer:

Comparative advantages result form lower opportunity costs.

  • France's opportunity cost of producing steel instead of TVs = 60 / 40 = 1.5 TVs per ton of steel
  • France's opportunity cost of producing TVs instead of steel = 40 / 60 = 0.67  tons of steel per TV

  • Japan's opportunity cost of producing steel instead of TVs = 10 / 20 = 0.5 TVs per ton of steel
  • Japan's opportunity cost of producing TVs instead of steel = 20 / 10 = 1  tons of steel per TV

France has a comparative advantage in the production of TVs (0.67 < 1), but Japan has a comparative advantage in the production of steel (0.5 < 1.5)

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On May 18, Rodriguez Co. issued an $84,000, 6%, 120-day note payable on an overdue account payable to Wilson Company. Assume tha
ankoles [38]

Answer:

c. Rodriguez is the borrower and debits Accounts Payable

Explanation:

Rodriguez Co will :

  1. De-recognise the Trade Payable - Wilson Company
  2. Recognise a Financial Liability to Wilson Company

Wilson Company will :

  1. Recognise an Investment or FA in Rodriguez Co
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3 years ago
If an economy consumes 68 percent of any increase in disposable income, then an increase in autonomous investment of $1 billion
madreJ [45]

Answer: The answer is $3,125,000,000

Explanation:

Since autonomous investment is government investment in the economy

68% of the increase in disposable income was consumed

Using the equation

Since Y = yd , spending in the economy is represented by

Equation C = 0.68yd, investment = $1,000,000,000

Y = C + I

Y = 0.68Y + 1,000,000,000

Y - 0.68 = 1,000,000,000

Factor out the variable Y

Y ( 1 - 0.68) = 1,000,000,000

0.32Y = 1,000,000,000

Divide both sides by 0.32

0.32Y/ 0.32 = 1,000,000,000 / 0.32

Y = 3,125,000,000

Therefore the increase in total spending will be $3,125,000,000

4 0
3 years ago
Employees expect their managers to practive management by, ___.
tatiyna

The answer is B. examples

3 0
3 years ago
Bricktan Inc. makes three products, basic, classic, and deluxe. The maximum Bricktan can sell is 130,000 units of basic, 508,000
katrin [286]

Answer:

the total contribution margin if Bricktan chooses the most profitable sales mix is $27,000,000

Explanation:

It is important to note that the limiting factor identified is the production hours.

<em>Step 1 Calculate Contribution per limiting factor of each product</em>

Basic

1 unit requires 0.1 hours

Contribution per limiting factor = Contribution per unit / Quantity of limiting factor per unit

                                                    = $15/0.10

                                                    = $150

Classic

1 unit requires 0.125 hours

Contribution per limiting factor = Contribution per unit / Quantity of limiting factor per unit

                                                    = $25/0.125

                                                    = $200

Deluxe

1 unit requires 0.25 hours

Contribution per limiting factor = Contribution per unit / Quantity of limiting factor per unit

                                                    = $55/0.25

                                                    = $220

<em>Step 2 Rank the products </em>

1st = Deluxe

2nd = Classic

3rd = Basic

<em>Step 3 Determine the production mix</em>

Product                  Total hours demanded                Balance

Capacity                                                                       134,000

Deluxe                   (230,000×0.25) =  57,500             76,500

Classic                   (508,000×0.125) = 63,500             13,000

Basic                      (130,000×0.1)     =  13,000                  0

<em>Step 4 Calculate total contribution</em>

Deluxe                   (230,000×$55) =  12,650,000          

Classic                   (508,000×$25) =  12,700,000            

Basic                      (130,000×$15)   =  1,650,000

Total                                                 =  27,000,000              

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