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vfiekz [6]
3 years ago
7

Suppose an economy produces two goods, food and machines. This economy always operates on its production possibilities frontier.

Last year, it produced 1000 units of food and 47 machines. This year it experienced a technological advance in its machine-making industry. As a result, this year the society wants to produce 1050 units of food and 47 machines. Which of the following statements is correct?
A. Because the technological advance occurred in the machine-making industry, it will not be possible to increase food production without reducing machine production below 47.
B. Because the technological advance occurred in the machine-making industry, increases in output can only occur in the machine industry.
C. In order to increase food production in these circumstances without reducing machine production, the economy must reduce inefficiencies.
D. The technological advance reduced the amount of resources needed to produce 47 machines, so these resources could be used to produce more food.
Business
1 answer:
defon3 years ago
6 0

Answer:

The correct answer is option D.

Explanation:

The economy was earlier producing at the point on its production possibility frontier where it was producing 1000 units of food and 47 machines. After a technological advancement in the machine-making industry, society will want to produce 1050 units of food and 47 machines.  

Due to technological advances, society will require fewer resources to produce the same level of machines or it could produce more machines using the same level of resources.  

As society wants to produce the same level of machines, it will need fewer resources to do so. The remaining resources could be used to increase the production of food. So, society will be able to produce 1050 units of food and 47 machines.

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A paint manufacturing company produces three paint bases of differing quality. Due to throughput limitations (measured in gallon
Tems11 [23]

Answer:

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Explanation:

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8 0
3 years ago
Look at the examples, and then determine which type of advantage each one describes.
lara [203]

Answer:

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4 0
3 years ago
Read 2 more answers
Custom Cars purchased $39,000 of fixed assets two years ago that are classified as 5-year MACRS property. The MACRS rates are 20
maw [93]

Answer:

The after-tax cash flow (after-tax salvage value) from the sale is $18,941.20

Explanation:

The computation of the after-tax cash flow is shown below:

= Purchase of fixed asset - depreciation charged - sale value of machine + profit on sale - tax rate

= $39,000 - ($39,000 × 20% + 32%) - $19,000 + $280 -  21%

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The $18,720 reflect the Written down value of the fixed asset which come from

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dlinn [17]

Answer:

Polite

Explanation:

8 0
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