Even though the United States has an absolute advantage in producing both refrigerators and shoes, it makes economic sense for it to specialize in the good for which it has a comparative advantage. The United States will export refrigerators and in return import shoes.
<h3>Do all countries have an absolute advantage in production?</h3>
In the production of at least one good or service, almost every nation enjoys an absolute competitive advantage. The key to absolute advantage is low-cost production. For instance, because they can benefit from low labor costs, China and other Asian nations are known to have a distinct advantage in the manufacturing sector.
<h3>What determines a nation's choice to specialize in a particular good?</h3>
When resources are scarce, a country's decision to focus on producing a specific good is also heavily influenced by its comparative advantage. Comparative advantage is based on the idea of opportunity cost, whereas absolute advantage refers to the superior production capabilities of one nation over another.
Does Japan have an absolute advantage in the auto industry?
Japan is said to have a clear advantage in the auto industry if it can produce cars just as well as the United States, but more quickly and with higher quality. The kinds of goods a nation decides to produce are greatly influenced by its absolute advantage or disadvantage in a given industry.
Learn more about U.S. auto industry:
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Answer:
Current dividend paid = 8% x $100 = $8
Current yield = <u>Current dividend paid</u>
Current market price
Current yield = <u>$8</u>
$74
Current yield = 0.1081 = 10.81%
Explanation:
Current yield is the ratio of current dividend paid to current market price. The current dividend paid is $8 and the current market price is $74. The division of current dividend by current market price gives current yield.
Answer:
total market supply for widgets = 4000
Explanation:
given data
total suppliers of widgets = 100
half supply = 35 widgets each
quarter supply = 40 widgets each
quarter supply = 50 widgets each
to find out
What is the market supply for widgets
solution
we know here that market supply is equal to sum of supplies by individual suppliers
and we know half supply of 100 = 35 widgets each
so 50 suppliers supply = 35 × 50 = 1750
and
quarter supply of 100 = 40 widgets each i.e
so 25 suppliers supply = 25 × 40 = 1000
and
quarter supply of 100 = 50 widgets each
so 25 suppliers supply = 25 × 50 = 1250
so
total market supply = 1750 + 1000 + 1250
total market supply for widgets = 4000
Answer:
$15,000
Explanation:
Calculation to determine what Legion should pay as cash interest for the six months ended June 30, 2021
Cash interest for the six months ended June 30, 2021 =$300,000*10%*6/12
Cash interest for the six months ended June 30, 2021=$15,000
Therefore Legion should pay cash interest for the six months ended June 30, 2021, in the amount of $15,000
