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3 years ago

The nations of Pamland and Lillytonia can produce two goods, DVD

Business

1 answer:

vampirchik [111]3 years ago

7 0

Answer:

The best deal would be option B) that is

Lillytonia sells 1/4 bushels of wheat to Pam land and gets 1 DVD player in return.

Explanation:

STEP 1

The output of DVD per unit of labor for Pamland = 150.

The output of Bushels of wheat per unit of labor for Pamland= 300.

The output of DVD per unit of labor for Lillytonia = 200.

The output of Bushels of wheat per unit of labor for Lillytonia= 600.

STEP 2

To calculate the comparative advantage, we use the following formula:

Comparative Advantage = DVD Output / Wheat Output

STEP 3

In Pamland, the opportunity cost, or the comparative advantage, of DVD is

300 / 150 = 2 bushels of wheat.

The opportunity cost of wheat in Pamland is 120/ 300 = 0.5 DVDs.

In Lillytonia the opportunity cost, or comparative advantage, of DVD is 600/200 = 3 bushels of wheat, while

The opportunity cost of wheat in Lillytonia is 200/600 = 1/3 or 0.33333 DVDs

STEP 4

As is clear from the calculations, Pamland should produce more wheat because it has the lower opportunity cost during production 2 against 3 for Lillytonia. Conversly, Lillytonia has the lowest opportunity cost for the production of DVD clocking 1/3 against a higher 1/2 for Pamland.

The countries should therefore trade in such a way that Pamlan is selling it's Wheat while Lillytonia is selling it's DVDs.

STEP 5

Given that Pamland's 2 bushels of wheat will cost it 0.5 DVDs, 4 bushels will thus cost it 1 DVD. It is impracticable (in any case) to have 1/2 of a DVD player.

Cheers

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Answer:

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3 years ago

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Martinez Company has three cost pools and two doggie products (leashes and collars). The activity cost pool of ordering has the

nikdorinn [45]

Answer:

The cost assigned to leashes for supervising is $180,000

Explanation:

Estimated Overhead Cost Drivers Overhead Rates

$ 260,000.00 130,000 $ 2.00 Per Order

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3 years ago

BioGrow Pharma Inc. wanted its research partner, an R&D company, to develop a cancer vaccine. However, the project required

grigory [225]

Answer: credible commitment

Explanation:

From the question, we are informed that BioGrow Pharma Inc. wanted its research partner, an R&D company, to develop a cancer vaccine but that the project required huge capital investments, and its research partner was not ready to solely face the risks involved.

Therefore, to gain its partner's confidence and to prove its involvement, BioGrow Pharma invested $100 million in the project. This investment made by BioGrow Pharma will result in a credible commitment.

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3 years ago

Ben invested $20,000 into a money market account and took out $5,000 at the end of year 5. He found out at the end of 10 years t

Crazy boy [7]

Answer:

r = 11.5%

Explanation:

Given data:

invested amount $20,000

withrawl amount after 5 year is $5000

Amount at the end of 10th yr is $50,000

present value is given as

$PV =\frac{ A}{(1 + r)^n}$

where

A - amount after given n year

$PV = \frac{5000}{(1 + r)^5} + \frac{50000}{(1 + r)^{10}}$

$20,000 = \frac{5000}{(1 + r)^5} + \frac{50000}{(1 + r)^{10}}$

Let $(1 + r)^5 = t$

squaring on both side

$(1 + r)^{10} = t^2$

$20,000 = \frac{5000}{t} + \frac{50000}{t^2}$

$20 = \frac{5}{t} + \frac{50}{t^2}$

$20 t^2 - 5t - 50 = 0$

solving for t we get

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5 0

3 years ago

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aleksley [76]

Answer:

The greatest number of mangoes which are to be taken out at a time from each basket so that both of them emptied simultaneously is the number of mangoes in each basket which is 120 mangoes for one basket and 168 mangoes for the other basket

Explanation:

Given that the number of mangoes in one basket = 120 mangoes

Also, the number of mangoes in another basket = 168 mangoes

The greatest number of mangoes, X and Y that are to taken out from each basket so that both of them will empty simultaneously is found as follows;

We note that the ratio of the number of mangoes in both baskets are;

120:168 = 5:7

Therefore, we have;

5 × Y = 120

Y = 20/5 = 24

Similarly, we have;

7 × X = 168

X = 168/7 = 24

We can take 5 mangoes from one basket and 7 mangoes from the other basket 24 times, for both mangoes to empty the same time

We can also take 5×12 = 60 mangoes twice from one basket and 7 × 12 = 84 mangoes twice from the other basket to empty the baskets

We can also take 120 mangoes one from one basket and 168 mangoes one from the other basket to empty the baskets.

Therefore, the greatest number of mangoes which are to be taken out at a time from each basket so that both of them emptied simultaneously is the number of mangoes in each basket which is 120 mangoes for one basket and 168 mangoes for the other basket.

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3 years ago