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kondor19780726 [428]
3 years ago
12

If the best surgeon in town is also the best at cleaning swimming pools, then according to the theory of comparative advantage,

this person should split his time evenly between being a surgeon and cleaning swimming pools. pursue the activity he enjoys more. specialize in being a surgeon because its opportunity cost is lower. specialize in cleaning swimming pools because it is more labor-intensive.
Business
1 answer:
tamaranim1 [39]3 years ago
7 0

Answer:

tspecialize in being a surgeon because its opportunity cost is lower

Explanation:

A person has comparative advantage in production if it produces at a lower opportunity cost when compared to other people.

Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives

What the surgeon would give up to pratice as a surgeon would be lower compared than if he decided to specialise in cleaning pools

thus he should specialize in being a surgeon because its opportunity cost is lower

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Answer:

C.  the opportunity cost

Explanation:

The opportunity cost -

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These cost can be ignored very easily , in case not seen properly .

The opportunity cost can very well be used to any important and educational decisions for the betterment of the company or firm.

Hence , from the given information of the question,

The correct option is C.  the opportunity cost .

8 0
3 years ago
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Assuming the required-reserve ratio is 20%, after a $5 billion purchase of securities (government bonds) from the non-bank publi
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Answer: $25 billion

Explanation:

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2 years ago
Consumers experience ______ marginal utility the more they consume of a particular good or service.
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<u>Answer:</u>

less

<u>Explanation:</u>

The law of diminishing marginal utility states that, as consumption of a good or service increases, its marginal utility decreases.

4 0
2 years ago
John takes $100 of currency from his wallet and deposits it into his checking account. If the bank adds the entire $100 to reser
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Answer:

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Any monetary injection to the banking system will increase the money supply only if the banking system (the whole set of banks) lends the money. The total effect is calculated by the increase in money x the money multiplier. The money multiplier = 1 / required reserves.

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3 years ago
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