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
Sladkaya [172]
3 years ago
10

In one hour. Sue can produce 70 caps or 21 jackets and Tessa can produce 50 caps or 25 jackets. Sue's opportunity cost of produc

ing a cap is jackets and Tessa's opportunity cost of producing a cap is has a comparative advantage in producing caps. If Sue and Tessa each specialize in producing the good in which they have a comparative advantage. 0.3; 0.50; Tessa; Tessa gains hut Sue loses 3.3; 2.0; Tessa; both Sue and Tessa gain 0.3; 0.50; Sue; both Sue and Tessa gain 3.3; 2.0; Sue; Sue loses but Tessa gains 0.3; 0.50; Sue; Tessa gains but Sue loses jackets.
Business
1 answer:
Marina CMI [18]3 years ago
6 0

Answer:

both Sue and Tessa gain 0.3; 0.50

Explanation:

Sue's production possibilities frontier:

  • 70 caps
  • 21 jackets

Sue's opportunity cost:

  • opportunity cost of producing caps = 21 / 70 = 0.3 jackets
  • opportunity cost of producing jackets = 70/21 = 3.33 caps

Tessa's production possibilities frontier:

  • 50 caps
  • 25 jackets

Tessa's opportunity cost:

  • opportunity cost of producing caps = 25 / 50 = 0.5 jackets
  • opportunity cost of producing jackets = 50/25 = 2 caps

Sue should produce caps and Tessa jackets:

total production = 70 caps (Sue) + 25 jackets (Tessa), if they trade they will both win because each specialized in producing the good in which they have a comparative advantage (lower opportunity costs). If Sue traded and received 21 jackets, she would still have 28 caps left. If Tessa traded and received 50 caps, she would still have 10 jackets left.

You might be interested in
New balance has many offerings. it makes the minimus line of shoes with a vibram outsole and revlite cushioning for those who wa
Colt1911 [192]
<span>The strategy of appealing to different types of customers in this way is an example of product definition.
</span><span>The product definition includes product concept, design requirements and specifications, features, target market.
</span>First the company must understand the customer<span> needs and then it should convert this understanding into technical requirements for a new </span>product<span>.</span>
8 0
3 years ago
Read 2 more answers
Bart works as an accountant for Good Times Restaurant. He is responsible for not only keeping the books current but also for mak
GenaCL600 [577]
Embezzlement. He is taking (stealing) asserts that we’re entrusted to him. Bad Bart!
7 0
2 years ago
Granfield Company is considering eliminating its backpack division, which reported an operating loss for the recent year of $41,
jekas [21]

Answer:

...

Explanation:

4 0
3 years ago
Which of the following lists two things that both decrease the money supply?
zysi [14]

Answer: B. raise the discount rate, make open market sales are two things that both decrease the money supply.

Explanation: If the discount rate is high, less banks are likely to borrow money from the Federal Reserve because they will be paying a higher interest rate on the borrowed funds. Open market refers to banks buying and selling different government entities in an open market.

3 0
2 years ago
Are the costs of debt and equity observable in the capital markets? If not, how do you estimate that cost of capital?
Levart [38]

Depending on the supply and demand of equity, a bond’s price can vary, thus the premium or discount price.

For example, when the interest rate falls, older bonds may become valuable because they were sold in a higher interest rate environment and therefore with a higher coupon rate. Consequently, investors holding those bonds can commend a "premium" to sell equity. On the other hand, if the interest rate rises, older bonds may become less valuable. In order to get rid of them, investors may have to sell for less, thus the "discount” price.

Bond prices are quoted as a percent of the bond’s face value, and an easy way to learn the price of a bond is simply by adding a zero to the price quoted. For instance, when you hear a bond is quoted at 99, it means the price for the bond is $990 for every $1,000 of face value. Because the bond price is below the face value, it’s said the bond is traded at a discount. On the other hand, if the bond is trading at 101, it means you will pay $1,010 to get that $1,000 face value bond.

The dividend discount model (DDM) is a procedure for valuing the price of a stock by using the predicted dividends and discounting them back to the present value. If the value obtained from the DDM is higher than what the shares are currently trading at, then the stock is undervalued.

Learn more about   equity here

brainly.com/question/1957305

#SPJ4

3 0
1 year ago
Other questions:
  • You want to buy a puppy. One of the kids at school has a dog that just had a litter of puppies. You ask her if you can get one o
    11·1 answer
  • Debit cards are connected to funds in your bank account. True or False
    5·1 answer
  • An individual stockholder is entitled to receive any dividends declared on stock owned, provided the stock is held on the date o
    13·1 answer
  • ​Thornton, Inc. has budgeted sales for the months of September and October at $ 302 comma 000 and $ 264 comma 000​, respectively
    6·1 answer
  • Kellogg Company is the world's leading producer of ready-to-eat cereal and a leading producer of grain-based convenience foods s
    8·1 answer
  • The following are national income account data for a hypothetical economy in billions of dollars: government purchases ($1,050),
    11·1 answer
  • During the recession of 2008 through 2010, Ford
    5·1 answer
  • A customer service manager at a retail clothing store has collected numerous customer complaints from the forms they fill out on
    15·1 answer
  • The flow of information and ideas from one person to another involving a sender method of transmitting the idea or content and r
    7·1 answer
  • what feature increases the high skim value of the activity report? justified right margins bullet points indented paragraphs wha
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!