1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
hjlf
2 years ago
7

Assume that Luxland and Leanderland specialize and trade in a way that is advantageous for bothof them. Explain what will happen

to the number of pretzels that Leanderland can produce.
Business
1 answer:
katen-ka-za [31]2 years ago
8 0

Question Completion:

Production outputs

                    Luxland    Leanderland

Chips                10                4

Pretzels            10                8

Total output    20               12

Answer:

Assuming that Luxland and Leanderland specialize and trade in a way that is advantageous for both of them, the number of pretzels that Leanderland can produce will be 16.

Explanation:

a) Data and Calculations:

Specialization Output:

                    Luxland    Leanderland

Chips                20                0

Pretzels              0                16

Total output     20                16

b) While it is acknowledged that Luxland has absolute advantage in the production of both chips and pretzels when compared to Leanderland, the total output for both economies, without specialization, remains 32 units (of both chips and pretzels).  When they specialize, Leanderland's output increases to 16 units from 12.  This results in total output of 36 units instead of 32 for both economies.

You might be interested in
Which of the following are true if you pay only the minimum amount each month towards your credit card bill?
Stels [109]
You will have a higher interest and will be in debt for longer
6 0
3 years ago
If there are two identical companies, one financed 100% equity and the other 50% equity and 50% debt, which would be worth more
Umnica [9.8K]
The one with 100% equity?
5 0
3 years ago
During the first two years, ABC drove the company truck 15,000 and 22,000 miles, respectively, to deliver merchandise to its cus
Andrej [43]

Answer:

11,000

Explanation:

7 0
2 years ago
The balance sheet of ABC reports total assets of $400,000 and $450,000 at the beginning and end of the year, respectively. The r
zimovet [89]

Answer:

ABC net income for the year is $42,500

Explanation:

Beginning total assets = $400,000

Ending total assets = $450,000

Average total assets = Beginning total assets + Ending total assets ÷ 2

= ($400,000 + $450,000) ÷ 2

= $425,000

Return on assets = 10%

Therefore,

Net income ÷ Average total assets = Return on assets

Net income = Return on assets × Average total assets

Net income = 0.1 × Average total assets

= $425,000 × 0.1

= $42,500

7 0
3 years ago
Explain why, in seeking to avoid financial crisis, the government's role as regulator of the financial system does not imply it
GREYUIT [131]

Answer: Market Efficiency

Explanation:

It is important that the Government as a regulator should not get involved in acts that would protect individual institutions from failure because that would defeat the whole purpose of a competitive industry.

If a government is known to directly involve itself in the protection of institutions from failure, efficiency in institutions may become low because of the lack of fear of failure as companies believe that should they run into bad times, they will simply be bailed out by the government so there is no need for them to maintain a competitive edge.

This can lead to a situation where we have companies performing sub optimally in an economy which can only act to reduce the Economic growth of a country.

Government institutions usually have such backing and in a lot of countries are prone to failure. Look at the Bamangwato Concessions Limited (BCL) mine in Botswana for instance that kept failing and refusing to improve it's efficiency because they could always run back to the government for a bailout. Their position eventually became so untenable that bankruptcy was the only option.

3 0
2 years ago
Other questions:
  • Is the coffee market growing or shrinking and why
    6·1 answer
  • What important element of the watergate scandal, investigation, and court cases was not covered by the constitution?
    11·1 answer
  • In an e-business innovation cycle, after an organization scans the environment for new emerging and enabling technologies, the n
    14·2 answers
  • What are five basic principles found in a free enterprise system?
    8·1 answer
  • A commercial bank has excess reserves of $5000 and a required reserve ratio of 20 percent. it makes a loan of $6000 to a borrowe
    15·2 answers
  • If the Federal Reserve tightens the money supply, other things held constant, short-term interest rates will be pushed upward, a
    9·1 answer
  • Closed the credit balance of $188,000 (from net income) in the retained earnings income summary account.
    6·1 answer
  • Carmie Iria, the director of a systems project committee, has received management approval for the implementation of a new accou
    14·2 answers
  • What is scientific management
    5·1 answer
  • Select all the words that are associated with Demand
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!