Answer:
it can still gain from international trade in that commodity, by getting it at a lower opportunity cost than if it produced it domestically.
Explanation:
A country has comparative disadvantage in production if it produces at a higher opportunity cost when compared to other countries.
The country with a comparative disadvantage can gain from trade by trading the good with a country that has comparative advantage in the production of that good. i.e. the country produces at a lower opportunity cost
For example, country A produces 10kg of beans and 5kg of rice. Country B produces 5kg of beans and 10kg of rice.
for country A,
opportunity cost of producing beans = 5/10 = 0.5
opportunity cost of producing rice = 10/5 = 2
for country B,
opportunity cost of producing rice = 5/10 = 0.5
opportunity cost of producing beans = 10/5 = 2
Country B has a comparative disadvantage in the production of beans and country A has a comparative disadvantage in the production of rice
Country B should buy beans from A and A should buy rice from B
Answer:
5.13%
Explanation:
Given:
Worth of investment today (PV) = $1,000
Investment worth after 6 years (FV) = $1,350
Time period of investment (nper) = 6 Years
It is required to compute annual return (RATE). This can be computed using spreadsheet function =RATE(nper,-PV,FV).
Substituting the values, we get =RATE(6,-1000,1350)
= 5.13%
Present value is negative as it is a cash outflow.
Therefore, annual return is computes as 5.13%.
Answer:
The amount that Lena will invest in fund B would be $4000.
Explanation:
Given information -
Amount invested in fund A - $6000
Return earned on fund A - 6%
Let us assume amount invested in fund B be x
Return earned on fund B - 1%
Return on both funds together - 4%
Let us assume the total amount of fund invested be ($6000 + x)
Now using simple equation , we will take out the value of x which is the amount invested in fund B -
$6000 X 6% + x X 1% = 4% ( $6000 + x )
= $360 + .01 x = $240 + .04 x
= $360 - $240 = .04 x - .01 x
$120 = .03 x
x = $120 / .03
= $4000.
Answer: just give what u know the business is small so it can’t manage
Explanation:
Answer:
maximum income is $900
Explanation:
given data
oil change = $20
per day = 40 customer
increase = $ 2
dailer customers = 2
owner charge = $ 2
to find out
income from the business
solution
we know current income is 40 × 20
current income = $800
we consider here price increase x and income as function y
so y = (20 +2x) × ( 40 - 2x) ........1
y = −4x² + 40x + 800
take derivative and put dy/dx = 0 for maximum
dy/dx = -8x + 40
0 = -8x + 40
x=5
so here from 1
y = (20 +2x) × ( 40 - 2x)
y = (20 +2(5)) × ( 40 - 2(5))
y = 30 × 30
y = 900
so maximum income is $900
