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
AnnyKZ [126]
3 years ago
15

Two isolated nations, Alphaland and Betaton, are considering opening their borders to trade with each other. Both nations consum

e only two goods: salt and pepper. Alphaland can produce either 80 tons of salt per day or 5 tons of pepper per day, while Betaton can produce either 3 tons of salt per day or 1 ton of pepper per day. Which trade ratios would make both nations better off?
Business
1 answer:
Artist 52 [7]3 years ago
7 0

Answer:

5 tons of salt for 1 ton of pepper

10 tons of salt for 1 ton of pepper

Explanation:

Alphaland's opportunity cost of producing one ton of pepper = 80 ÷ 5

                                                                            = 16 tons of salt

Betaton's opportunity cost of producing one ton of pepper = 3 ÷ 1

                                                                            = 3 tons of salt

Alphaland's opportunity cost of producing one ton of salt = 5 ÷ 80

                                                                            = 0.0625 tons of pepper

Betaton's opportunity cost of producing one ton of salt = 1 ÷ 3

                                                                            = 0.3333 tons of pepper

Therefore, Betaton has a comparative advantage in producing pepper because it has the lower opportunity cost of producing pepper as compared to Alphaland. On the other hand, Alphaland has a comparative advantage in producing salt because it has the lower opportunity cost of producing salt as compared to Betaton.

Hence, Betaton is specialized in the production of pepper and Alphaland is specialized in the production of salt.

Trade is beneficial for both the nations when Alphaland buys pepper at a price lower than the 16 tons of salt and Betaton sells pepper at a price greater than 3 tons of salt.

Trade ratios:

5 tons of salt for 1 ton of pepper

10 tons of salt for 1 ton of pepper

You might be interested in
Please could I get help with this<br>​
Zina [86]

Answer: people need food

Explanation:

3 0
3 years ago
Which of the following were reasons for wanting government control of the railroad and large production entities? economic gap b
kondaur [170]
The major reason that government control or regulation of railroads and large production entities because of monopolies. In the late 19th and early 20th centuries there was major growth in industries such as the railroad and oil industries in the United States, at this time companies became monopolies in these industries and thus there was pressure on the U.S. Government to weaken the control of these monopolies. 
3 0
2 years ago
Mouse Inc. uses the alternative method of accounting for prepayments and purchased a $1,200, 6-month insurance policy. The compa
zysi [14]

Explanation:

The adjusting journal entry to record the given adjustment is shown below:

At the year-end

Insurance expense A/c Dr. A/c $800

       To Prepaid Insurance A/c $800

(Being insurance expense is recorded)

The computation is given below:

= Prepayment done for 6 months insurance policy - expired insurance

= $1,200 - $400

= $800

3 0
2 years ago
Paper back and a domestic book selling company.
lutik1710 [3]

sksbeveurirjrbjfifjdbdudisbwbs8dbwbs9jsbs

7 0
3 years ago
Two types of business communications enhanced by desktop publishing are
laila [671]
Internal and external are two types of business communications enhanced by desktop publishing. 
This is to improve both internal and external communication process of a business and become more productive.
7 0
3 years ago
Other questions:
  • What are the major benefits to IKEA of shifting so much of its global production to China? concentration of manufacturing assets
    9·1 answer
  • A company's income statement showed the following: net income, $122,000; depreciation expense, $34,000; and gain on sale of plan
    8·1 answer
  • As of January 1, 2021, Chelsea Co. had a balance of $520,000 in its allowance for uncollectible accounts. Based on experience, 2
    8·1 answer
  • What takes a big-picture perspective and works on high-impact issues?
    7·1 answer
  • I really need to graduate HIGHSCHOOL PLEASE HELP ASAP. In a Chapter 7 bankruptcy, a debtor: A. is required to draw up a petitio
    15·2 answers
  • Government policies that heavily tax some activities while subsidizing others and that fix or control interest rates will result
    15·1 answer
  • In recent years, foreign firms were reluctant to merge with or acquire American corporations.a. Trueb. False
    9·1 answer
  • All of the following programs enable young people to serve their country and the world EXCEPT...
    8·1 answer
  • The primary responsibility for establishing and maintaining internal control rests with
    7·2 answers
  • The family business is looking to expand, and some members of the family, but not all, feel that it might be worth bringing in s
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!