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
alina1380 [7]
3 years ago
15

Suppose that Italy and Germany both produce beer and stained glass. Italy's opportunity cost of producing a pane of stained glas

s is 5 barrels of beer while Germany's opportunity cost of producing a pane of stained glass is 11 barrels of beer. By comparing the opportunity cost of producing stained glass in the two countries, you can tell that the production of stained glass and has a comparative advantage in the production of beer. has a comparative advantage in Suppose that Italy and Germany consider trading stained glass and beer with each other. Italy can gain from specialization and trade as long as it receives more than of beer for each pane of stained glass it exports to Germany. Similarly, Germany can gain from trade as long as it receives more than of stained glass for each barrel of beer it exports to Italy. Based on your answer to the last question, which of the following prices of trade (that is, price of stained glass in terms of beer) would allow both Germany and Italy to gain from trade?a) 1 barrel of beer per pane of stained glass b) 10 barrels of beer per pane of stained glass c) 2 barrels of beer per pane of stained glass d) 17 barrels of beer per pane of stained glass

Business
2 answers:
OlgaM077 [116]3 years ago
8 0

Answer: The answer is c 2 barrel of beer per pane of stained glass

Explanation:

Since the theory of opportunity cost states that,to have a comparative advantage in a commodity, the opportunity cost of that country must be low.

Therefore the price of stained glass in terms of beer that would allow both Germany and Italy to gain from trade is

Opportunity cost = 11 /5

=2.2

Therefore the correct option is 2 barrel of beer per pane of stained glass

Dimas [21]3 years ago
3 0

Answer:

Explanation: See attachment below

You might be interested in
Camper's Edge Factory produces two products: canopies and tents. The total factory overhead is budgeted at $750,000 for the year
Pavel [41]

Answer:

Camper's Edge Factory

Departments                                  Cutting             Sewing

a. The total number of budgeted

   direct labor hours for the year  60,000            70,000

b. Products                                     Canopy          Tent

   Factory overhead per unit         $17.50            $40

Explanation:

a) Data and Calculations:

Total budgeted factory overhead = $750,000

                                               Canopy        Tent     Total

Direct labor hours  

Cutting                                       2                     1         3

Sewing                                       1                     6         7

Total direct labor hours            3                    7

Budgeted production units 20,000          10,000

Departments                              Cutting                        Sewing

Budgeted factory overhead  $350,000                     $400,000

Direct labor hours:

Canopy                                  40,000 (20,000 * 2)          10,000 (10,000 * 1)

Tent                                       20,000 (20,000 * 1)          60,000 (10,000 * 6)

Total direct labor hours        60,000                              70,000

Overhead allocation rates     $5.833                               $5.714

                         ($350,000/60,000)                              ($400,000/70,000)

Overhead per unit              $17.50 ($5.833 * 3)            $40 ($5.714 * 7)

               

5 0
2 years ago
Ginger's working on creating her first Google Search Ad. She wants to create an inviting and relevant ad, so potential customers
pav-90 [236]

has a larger font size

includes a current promotion

is listed after search results

includes at least two different colors

has a relevant headline

Answer:

has a relevant headline

includes a current promotion

Explanation:

A google search ad is a paid advertisement that is created to promote a product or service using the google ads platform and they appear in the search results on Google. To create a relevant ad that will earn user clicks, Ginger should focus on creating an ad that has a relevant headline that is related to the product or service so that it will attract the potential customers that are looking what she is offering. Also, the ad should include a current promotion that will increase potential customer's interest and call them to action.

The other options are not right because having a large font size, being listed after search results  and including at least two different colors  won't get customers interest and lead them to act by clicking on the ad.

7 0
3 years ago
If the price elasticity of supply is 0.5 and the quantity supplied decreases by 6%, then the price must have decreased by 3%. a.
PolarNik [594]

Answer: False

Explanation:

The price elasticity of supply measures the change in quantity supplied when the price changes.

The basic trend is that when price increases, quantity supplied increases as well. The reverse is true.

Price elasticity of supply = %Change in quantity supplied / % change in price

0.5 = -6% / Change in price

0.5 * Change in price = -6%

Change in price = -6% / 0.5

= -12%

The statement above is therefore false because price should have reduced by 12% for quantity supplied to reduce by 6%

3 0
2 years ago
A corporate bond with a 6.5 percent coupon has 15 years left to maturity. It has had a credit rating of BBB and a yield to matur
Scrat [10]

Answer:

Price change in dollars = $104.22

% decrease in price of dollars = 11.13%

Explanation:

We assume the corporate bond have a face value of $1,000

Face Value = $1000

Coupon = 6.5%*1000/2 =32.50

Number of Periods = 15*2 =30

Semi annual rate of BBB bond = 7.2%/2 =3.6%

Price of BBB Bond = PV of Coupons + PV of Par Value =

Price of BBB Bond = 32.50*(((1-(1+3.6%)^-30)/3.6%)+1000/(1+3.6%)^30

Price of BBB Bond = $936.43

Semiannual Discount Rate for BB bond = 8.5%/2 = 4.25%

Price of BB Bond = PV of Coupons + PV of Par Value

Price of BB Bond = 32.50*(((1-(1+4.25%)^-30)/4.25%)+1000/(1+4.25%)^30

Price of BB Bond= $832.21

Price change in dollars = $936.43 - $832.21

Price change in dollars = $104.22

% decrease in price of dollars = $104.22 / $936.43

% decrease in price of dollars = 0.111295025

% decrease in price of dollars = 11.13%

6 0
3 years ago
Foreign exchange ________ earn a profit by a bid-ask spread on currencies they purchase and sell. Foreign exchange ________, on
eimsori [14]

Answer:

Dealers, Brokers

Explanation:

8 0
3 years ago
Other questions:
  • Job 243 was recently completed. The following data have been recorded on its job cost sheet: Direct materials $ 55,870 Direct la
    10·1 answer
  • If a stricter quota, such as 30,000 tons of apricots, was imposed on this market, we would expect:
    5·1 answer
  • Although you are really tired after a long run, you are considering meeting a friend at the local track to run a few more miles.
    6·1 answer
  • Assume you are the new marketing vice president at Mayo Clinic. The CEO and the board have decided to expand their international
    11·1 answer
  • What is the difference between finance and accounts​
    10·1 answer
  • The umayyad insisted that conquered people pay a special head tax if they did not convert to islam. this head tax was called the
    7·1 answer
  • Ann has 3/4 as many stickers as Brenda. Brenda has 2/5
    5·1 answer
  • Before the Equal Employment Opportunity Commission can file a civil suit for a violation of the Civil Rights Act based on a clai
    9·1 answer
  • What is the good that you have selected?
    9·1 answer
  • Colbert, and $1,300,000 for stewart. what was consolidated cost of goods sold for 2021?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!