Answer:
If Mary and Tim specialize in the good in which they have a comparative advantage, ______.
Mary would specialize in making cakes while Tim would specialize in making pies.
Explanation:
a) Data and Calculations:
Mary's opportunity cost of making a cake = 2 pies
She can make additional 5 (10/2) cakes instead of making pies
This will increase her cakes to 25 a day (20 + 5)
Tim's opportunity cost of making a cake = 4 pies
She can make additional 40 pies (10 * 4) instead of making cakes
This will increase her pies to 60 pies a day (20 + 40)
When they specialize there will be 25 cakes and 60 pies produced in a day instead of 30 cakes and 30 pies.
Answer:
The correct answer would be, Product Development Growth Strategy.
Explanation:
In Product Development Growth Strategy, the company emphasizes in the promotion of the new or existing product in new or existing market. In this strategy, the existing products or services are modified just a way that they look new and exciting for the existing or the new clients. When there seems little to no opportunity for new growth in a company's current market, this product development growth strategy is used.
So the auto insurance agent is also using this strategy with his existing customer, Maryam, who called him to renew her policy. He tells her about some new exciting features that has been included in their services. So he basically is promoting or pursuing a product development growth strategy.
