Answer:
ok I'll give you what I know monopolies are one business operating so try and use that
The answer is explained in detail below
Explanation:
![a_{LC} = 2](https://tex.z-dn.net/?f=a_%7BLC%7D%20%3D%202)
![a_{KF} = 3](https://tex.z-dn.net/?f=a_%7BKF%7D%20%3D%203)
![a_{LF} = 1](https://tex.z-dn.net/?f=a_%7BLF%7D%20%3D%201)
Labor, L = 2000; Capital, K = 3000
Labour constraint,
Capital constraint ,
Solving the equation further, we get
![Q_{F} \leq 2000 - 2Q_{C}](https://tex.z-dn.net/?f=Q_%7BF%7D%20%5Cleq%202000%20-%202Q_%7BC%7D)
![Q_{F} \leq 1000 - \frac{2}{3} Q_{C}](https://tex.z-dn.net/?f=Q_%7BF%7D%20%5Cleq%201000%20-%20%5Cfrac%7B2%7D%7B3%7D%20Q_%7BC%7D)
- The range for the relative price of cloth such that the economy produces both cloth and food is 2/3 and 2
- Low cloth production → economy will use relatively more labor to produce cloth → opportunity cost of cloth is 2/3rd units of food.
- High cloth production → economy dips on labor → taking capital away from food production → raising opportunity cost of cloth to 2 units of food.
- If relative price of cloth lies between 2/3 and 2 units of food, the economy produces both goods.
- If the price of cloth decreases below 2/3 → complete specialization in food production → low compensation for producing cloth
- If the price of cloth rises above 2 → complete specialization in cloth production → low compensation for producing food
Answer:
There are no pressures on price to either rise or fall.
Explanation:
Equilibrium price refers to the market price at which the amount of quantity supplied is exactly equal to the amount of quantity demanded. At this point, the market supply curve and the market demand curve intersect each other.
This price would be determined by the market forces such as demand and supply of the goods.
Answer:
Last in, Fast out (LIFO)
Explanation:
The Last in, Fast out (LIFO) method is an accounting method used to attach value to inventory. Under the LIFO formula, the assumption is that the last item to be purchased will be sold first. The costs of the final goods to be produced or purchased will be used to expense the first batch of products to be sold.
LIFO is the contrast of FIFO, which stands for first in first out. LIFO, as an inventory accounting technique, is rarely used outside the US. The approach is suitable for large businesses with huge inventories such as car dealers and retailers.