Answer:
b. countries can become better off by specializing in what they do best.
Explanation:
Comparative advantage in economics is the ability of an individual or country to produce a specific good or service at a lower opportunity cost better than another individual or country.
The comparative advantage gives a country a stronger sales margin than their competitors as they are able to sell their specific products or render their peculiar services at a lower opportunity cost.
In 1817, David Ricardo who is an english political economist talked about the law of comparative advantage in his book “On the Principles of Political Economy and Taxation."
Also, the principle of comparative advantage asserts that countries can become better off by specializing in what they do best.
This simply means that, any country applying the principle of comparative advantage, would enjoy an increase in output and consequently, a boost in their Gross Domestic Products (GDP).
Answer: 3
Explanation:
The marginal rate of substitution simply means the rate at which one good will be exchanged for another good based on the current market price.
Since you like servants three times as much as robots, this implies that the utility that one gets from one servant is exactly like the utility that will be gotten from three robots.
Therefore, the utility function will be:
U = 3X + Y
Then, the marginal rate of substitution will be:
= MUX/MUY
= 3
Answer:
Results are below.
Explanation:
<u>First, we need to calculate the selling price per composite unit:</u>
<u></u>
selling price per composite unit= 1,280*0.6 + 530*0.4
selling price per composite unit= $980
<u>Now, the unitary variable cost per composite unit:</u>
Variable cost per composite unit= 780*0.6 + 280*0.4
Variable cost per composite unit= $580
<u>To calculate the break-even point in units, we need to use the following formula:</u>
Break-even point in units= fixed costs/ contribution margin per composite unit
Break-even point in units= 150,000 / (980 - 580)
Break-even point in units= 375
<u>Finally, the number of units per product:</u>
Desks= 375*0.6= 225
Chairs= 375*0.4= 150
Answer: 0.67
Explanation:
From the question, we are informed that Levine Inc. is considering an investment that has an expected return of 15% and a standard deviation of 10%.
The investment's coefficient of variation will be the standard deviation divided by the expected return. This will be:
= 10/15
= 0.67
