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Nataly [62]
3 years ago
11

When Kim and Liam move from spending 30 minutes of each hour producing pies and 30 minutes producing cakes to specializing in th

e good in which they have a comparative​ advantage, the total gains from trade are​ ______ pies and​ ______ cakes.
A.​30; 100
B.​100; 400
C.​100; 30
D.​40; 200
Business
1 answer:
Novay_Z [31]3 years ago
8 0

Answer:

A) 30 pies and 100 cakes.

Explanation:

Kim can produce 40 pies or 400 cakes an hour. Liam can produce 100 pies or 200 cakes an hour.

Since each one will specialize in the production of the good in which they have a comparative advantage, Kim will produce cakes and Liam will produce pies.

before specialization Kim produced 20 pies and 200 cakes, while Liam produced 50 pies and 100 cakes.

So the total gains from trade are:

  • 50 pies - 20 pies = 30 pies
  • 200 cakes - 100 cakes = 100 cakes
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Each step is represented with the actions to be carried out, including the decision.

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Learn more here: brainly.com/question/20304492

3 0
3 years ago
Currently the price of Titanic stock is $20 a share. You have $40,000 of your own funds to invest. Using the initial margin of 5
PtichkaEL [24]

Answer:

The percentage profit if you purchase the stock and it rises to $30 a share

= $166.67

Explanation:

Titanic stock is $20 a share. You have $40,000 of your own funds to invest.

∴ $4,000.00/$20 = 200.00 shares were bought with $4,000.00

With margin of 50 percent and maintenance margin of 30 percent,

50% + 20% = 80%

∴  New Cost of Stock ($30.00) ÷ $4,000.00)

= $133.33 X 0.80

= $166.67

6 0
3 years ago
Suppose Baa-rated bonds currently yield 6%, while Aa-rated bonds yield 4%. Now suppose that due to an increase in the expected i
Leviafan [203]

Answer:

Initial confidence index 66.67%

New confidence index 71.4%

Explanation:

Calculation of what would happen to the

confidence index

Using this formula

Confidence index=(Average yield for high grate bonds)/(Average yield for intermediate graded bonds)

Let plug in the formula

Initial confidence index=4%/6%

=0.6667 ×100

=66.67%

Due to increase in the yields the New Confidence Index will be;

New confidence index

=(4%+1%)/(6%+1%)

=5%/7%=0.7142857 or 0.714

0.714×100=71.4%

Hence, the New Confidence index tend to indicates slightly higher confidence and the reason for the increase in the index is the expectation of higher inflation.

6 0
3 years ago
_____ involves reducing the impact of a risk event by reducing the probability of its occurrence.
inysia [295]
Risk mitigation involves reducing the impact of a risk event by reducing the probability of its occurrence. To mitigate means to make something less bad or less severe so in this case if a risk turned out to be a negative reality, risk mitigation should be a part that you've already planned so you could easily solve it and move on with the project.
8 0
3 years ago
Felicia put $85 into an account that pays 3.8% interest, compounded semiannually. according to the rule of 72, approximately how
ella [17]

Answer: 18.9 years

Explanation:

6 0
3 years ago
Read 2 more answers
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