Squirrels are Neeraj's economic answer to<u><em> What to produce.</em></u>
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In economics, for whom to produce, would be the buyers. How to produce, would be the method used to create the squirrels, i.e. carving. When to produce, would depend on the demand.
Three fundamental concerns must be addressed by any economic system: what to create, how to make it, and for whom to produce it. It's important to remember that several factors, including land, labor, and capital, are in short supply. Sadly, we must make some sacrifices because we cannot have everything. How about the best ones? Choosing the combination of goods and services that maximizes value or utility is key to maximizing the effectiveness of resource allocation.
What kinds and how much of each product should be made? Products that cannot maintain profitable prices in the market will be scrapped. Therefore, only products with positive pricing should be produced, and they should be made in a way that will cause the economic markets to clear.
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The liabilities will be understated.
Answer:
Explanation:
Here Nicolas will gain comparative advantage only when he is selling the good he is specializing in and he would specialize in that good which would have lower opportunity cost for him. So the first step that we have to do here is to find out for which good Nicolas will have lower opportunity cost.
For Nicolas who in 8 hours can either catch 24 pound of fish or repair 15 cars,
the opportunity cost for catching 1 fish is = 15/24 = .625
the opportunity cost for repairing 1 car is = 24/15 = 1.6
So from the above observation we can say that for Nicolas catching fish has lower opportunity cost for him , so he should specialize in catching fish.
Therefore the term of trade for Nicolas would be
1 fish = .625 cars ,
if he can catch and sell 100 units worth of fish then he would have to give up 62.5 cars and then only he will gain from trade,
1 x 100 fish = .625 x 100
100 fish = 62.5 cars.
Idk so you need to ask somebody else because I’m really dumb and I don’t have the answer for u
