Answer:
- a. 2/3 gallon
- b. 5/7 gallon
Explanation:
1. Megan takes 3 hours to brew a gallon of root beer and 2 hours to make a pizza.
If she makes a pizza therefore, that is 2 hours that could have been used to make a gallon of root beer. However, it takes 3 hours to make a complete gallon so in those 2 hours only;
= 2/3 gallons would have been made
2. Susan takes 7 hours to brew a gallon of root beer and 5 hours to make a pizza.
Like Megan above, the 5 hours that would be used for Pizza would have gone towards making a gallon of beer. If it takes 7 hours to make a gallon then those 5 hours would have made;
= 5/7 gallons of root beer.
3. Absolute Advantage: Megan
The person with the absolute advantage is the person that can produce more goods with the same amount of costs. Megan can make more pizza in a smaller amount of time than Susan so she has Absolute advantage.
Comparative Advantage: Megan
The person with a Comparative advantage is the one that has the lowest opportunity cost when producing a good. Megan again has a lower opportunity cost with an opportunity cost of 2/3 gallons.
is this real...............................
Answer: They are both right.
Explanation:
Firms in every market will always maximise profit where their Marginal Revenue equals Marginal Cost because at this point, resources are being fully utilized. This is therefore no different in a Perfectly competitive market so Skip is correct.
Peggy is also correct however because in a Perfectly Competitive market, the demand curve is perfectly elastic. This creates a situation where the Price, Marginal Revenue and Average Revenue are all the same and represent the demand curve as well.
With the Price being the same as the Marginal Revenue in a Perfectly competitive firm, that means that where the Price equals Marginal Cost is where the Marginal Revenue equals Marginal Cost as well so indeed perfectly competitive firms maximize profit where price equals marginal cost.
Estate Tax-The estate tax is a tax on your right to transfer property at your death.
Gift Tax-The tax you receive if you give someone money or property during your life.
Answer: $12,044
Explanation:
Compound interest/Formula
A=P (1 + r/n) ^ nt
A = final amount
P = initial principal balance
r = interest rate
n = number of times interest applied per time period
t = number of time periods elapsed (years)
Where A=42000, P=?, r=7%, n= 4 times, t=18
42000= P (1 + 0.07/4)^4(18)
42000= P (1 + 0.0175)^72
42000= P(1.0175)^72
42000=P(3.4872)
Divide both sides by 3.4872 to make P the subject of the formula
P=$12,044