Answer:
The Micro Islands have a comparative advantage in producing botanical soaps.
Explanation:
Comparative advantage can be defined as the ability of an economy to produce a good at lower opportunity cost than other economies. This enables the economy sell the product at lower prices, therefore having higher margin of profit than other economies.
The opportunity cost of Micro Island in producing 300 botanical soaps is the cost of producing 30 bamboo towels. The opportunity cost is quite low.
While for Macro Island the opportunity cost of producing 500 botanical soaps is 250 bamboo towels. The opportunity cost is higher than for Micro Island.
<span>a contractionary fiscal policy that will shift the aggregate demand curve to the left by an amount equal to the initial change in investment times the spending multiplier.</span>
Yes it does. Unemployment is when a person isn't currently hired at a work pleace. If people are unemployed they are making no income so less people are in need of products so it lowers the demand.
Factors of production im pretty sure
Answer:
(Sales volume * Price) – (Variable costs + Fixed costs)
Explanation:
Profit is equal to Total sales less Total costs .
Here, Total costs is the addition of Variable and Fixed costs
(Sales Volume x Price) - (Variable Costs + Fixed Costs).
