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Tanya [424]
2 years ago
9

Suppose Iceland goes from being an isolated country to being an exporter of coats. As a result, a. consumer surplus increases fo

r consumers of coats in Iceland. b. producer surplus increases for producers of coats in Iceland. c. total surplus remains unchanged in the coat market in Iceland. d. it is reasonable to infer that other countries have a comparative advantage over Iceland in coat production.
Business
1 answer:
andrezito [222]2 years ago
8 0

Answer:

Option (b) is correct.

Explanation:

It is reasonable to infer that Iceland have a comparative advantage in producing coats, it is may be due to the lower opportunity cost of producing than the other country.

A country is exporting a commodity in which it has a comparative advantage and also, a country is exporting a commodity if the world price of the product is greater than the domestic price of the product.

Under a free trade condition, Iceland continue exporting coats until the domestic price become equal to the world price.

Hence, if there is any increase in the domestic price of the coat then this will result in a reduction in consumer surplus.

If Iceland exports coats at the world price then the producers of the coats will experience an increase in the producers surplus.

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"B"

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3 years ago
What is the capitalism
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Explanation:

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2 years ago
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2 years ago
Some examples of opportunity costs that should be included in project analysis are?
Reptile [31]

Some examples of opportunity costs that should be included in project analysis are that, skilled employees who are moved from an existing project to the new project causing a loss in the existing project.

Opportunity cost refers to what you have to give up to buy what you want in terms of other goods or services. Opportunity cost is a great tool for project selection in many organizations.

The opportunity cost is the difference between the net value of the path that was chosen and the net value of the best alternative that was not chosen.

There is an example of opportunity cost which should be included in the project analysis. The situation where skilled employees are moved from an existing project to the new project causing a loss in the existing project, should be analyzed.

Hence, the answer was given and explained above.

To learn more about the opportunity cost here:

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4 0
1 year ago
M. Cotteleer Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and
8090 [49]

Answer:

a) 100 units

b) 2.5 order per year

c) 50 units

Explanation:

Given data:

demand 250 units

order cost is $20

holding cost $1

a) Economic order quantity EOQ = \sqrt{\frac{2\times demand \times order\ cost}{holding \ cost}}

EOQ = \sqrt{\fac{2\times 250 \times 20}{1}} =100 units

b) number of order for each year = \frac{annual/ demand}{EOQ}

                                                    = \frac{250}{100} = 2.5order/ year

c) average inventory = \frac{Q}{2} = \frac{100}{2} =  50 units

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3 years ago
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