when an inventor gets a patent for his work,it means the goverment will buy a specific amount of the invention

Sergeeva-Olga [200]

Answer:

Contente's opportunity cost of producing 1 bushel of rye is 0.5 of jeans, and Dolorium's opportunity cost of producing 1 bushel of rye is 0.25 of jeans. Therefore, DOLORIUM has a comparative advantage in the production of rye, and CONTENTE has a comparative advantage in the production of jeans.

Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces rye will produce 64 million bushels per month, and the country that produces jeans will produce 24 million pairs per month.

Suppose the country that produces rye trades 54 million bushels of rye to the other country in exchange for 18 million pairs of jeans.

Dolorium:

Export 54 million bushels of rye

Consume 10 million bushels of rye

Import 18 million pairs of jeans

Contente:

Export 18 million pairs of jeans

Consume 6 million pairs of jeans

Import 54 million bushels of rye

Before specialization, the total production of rye = 36 + 16 = 52 million bushels, and the total production of jeans = 6 + 12 = 18 million pairs.

Because of specialization, the total production of rye has increased by 12 million bushels per month, and the total production of jeans has increased by 6 million pairs per month.

Calculate the gains from trade—that is, the amount by which each country has increased its consumption of each good relative to the first row of the table.

Contente:

Before specialization and trade, produced and consumed 6 million pairs of jeans and 36 million bushels of rye.

After specialization and trade, consumed 54 million bushels of rye and 6 million pairs of jeans.

Gain from trade is 18 million bushels of rye.

Dolorium:

Before specialization and trade, produced and consumed 12 million pairs of jeans and 16 million bushels of rye.

After specialization and trade, consumed 10 million bushels of rye and 18 million pairs of jeans.

Gain from trade is -2 million bushels of rye and 6 million pairs of jeans.

Explanation:

There is a mistake in the question, since Contente's production of jeans must be 6 per hour and its production of rye should be 12 bushels per hour. That is the only way that it can produce 6 million pairs of jeans and 36 million bushels of rye. Something similar happens with Dolorium, it must be able to produce 16 bushels of rye per hour and 4 pairs of jeans per hour in order to produce 12 million pairs of jeans and 16 million bushels of rye.

Country Rye Jeans

Contente 12 6

Dolorium 16 4

Contente's opportunity cost of producing rye = 6 / 12 = 0.5 pairs of jeans.

Dolorium's opportunity cost of producing rye = 4 / 16 = 0.25 pairs of jeans.

Dolorium's production of rye = 16 bushels x 4,000,000 labor hours = 64,000,000 bushels of rye.

Contente's production of jeans = 6 pairs x 4,000,000 labor hours = 24,000,000 pairs of jeans

8 0

4 years ago

Exercise 1-16 Cost Classifications for Decision Making [LO1-5] Warner Corporation purchased a machine 7 years ago for $383,000 w

elena-s [515]

Answer:

Missing word "2. What is the total sunk cost regarding the decision to buy the model 200 machine rather than the model 300 machine? 3. What is the total opportunity cost regarding the decision to invest in the model 200 machine?"

1. Differential cost of buying model 200 machine = Cost of model 200 machine - Cost of model 300 machine

= $342,000 - $373,650

= -$31,650

We'll have a savings of $31,650 if model 200 is purchased rather than model 300

2. $383,000 (The Cost of existing machine). Note: $383,000 is a sunk cost since it has already been incurred.

3. Opportunity cost is the total return of the project if the money was invested elsewhere. The Opportunity cost of investing in model 200 machine is $445,600 (Returns from the alternate project)

6 0

3 years ago

If you can buy a pack of candy bars 5.99 or a 2 pack 3.49,what is the unit cost for a bar in each case?

tatyana61 [14]

Answer:

1.745 per unit

Explanation:

6 0

3 years ago

Does this big data approach work for all three Gap Inc.'s primary brands: Old Navy, Gap, and Banana Republic? Why or why not? Wh

Greeley [361]

Answer:

We feel that the big data approach is applicable for all three of Gap Inc.’s brands, although the biggest insights from the information collected will come from the brand that has the greatest product diversity. Banana Republic is Gap’s most targeted brand with its expensive price points, so designers already have a relatively good idea of what their customers are looking for. The target customer is upscale, predominantly female, and interested in a classic look. The variability in design for the brand is least among Gap’s, but still significant so the ability to assess the success

of product offerings in real time is extremely valuable. Similar to the model used by Netflix, withonline shopping Gap does not have to rely on feedback from just the very few customers that choose to comment on and rate products that they purchase.With the introduction of “Product 3.0”, the trends seen at Banana Republic and the Gap were able to cascade down into the less expensive, family brand of Old Navy. This allowed for consumers of all income brackets to be touched. All brands had a clear vision with common ground, being more predictive and demand driven based on data analytics. This sharing of information benefits all of the brands by better streamlining products towards market trends. Since Old Navy and Gap have a greater number of SKU’s, they will have an even greater benefit from big data. But managing, purchasing and inventories for these companies is even more challenging, and having to deeply discount unsuccessful SKU’s can be unavoidable. But minimizing these unsuccessful products can be achieved through big data by analyzing how well a product performs before waiting to receive customer feedback. Gap can emulate fast fashion companies like Zara who keep production runs short, even shorter for unsuccessful runs, and create a sense of urgency from the customer without complicating the customer’s decision process with an inevitable sale

Explanation:

8 0

3 years ago

Rosina purchased a 15-year bond at par value when it was initially issued. the bond has a coupon rate of 7 percent and matures 1

Margaret [11]

Rosina should expect "to realize a capital loss if she sold the bond at today's market price."

A capital loss is the loss brought about when a capital resource, for example, a speculation or land, diminishes in esteem. This misfortune isn't understood until the point that the benefit is sold at a cost that is lower than the first price tag. A capital loss is basically the distinction between the price tag and the cost at which the advantage is sold, where the deal cost is lower than the price tag. For instance, if a financial specialist purchased a house for $250,000 and sold the house five years after the fact for $200,000, the speculator understands a capital loss of $50,000.

4 0

3 years ago