Answer:
Bellisima's opportunity cost:
Production of rye per million hours of labor = 24 / 12 = 2 pairs of jeans
Production of jeans per million hours of labor = 12 / 24 = 0.5 bushels of rye
Dolorium's opportunity cost:
Production of rye per million hours of labor = 32 / 8 = 4 pairs of jeans
Production of jeans per million hours of labor = 8 / 32 = 0.25 bushels of rye
Dolorium has a comparative advantage in the production of jeans while Bellisima has a comparative advantage in the production of rye.
If both countries specialize:
Bellisima will produce 48 million bushels of rye.
Dolorium will produce 128 million pairs of jeans.
Total production of rye has increased by 12 million bushels.
Total production of jeans has increased by 24 million pairs.
Answer:
High capital expenditures, low depreciation, increasing working capital
Explanation:
In simple words, cash flows refers to the in and out transnfer of cash from and by a company while operating their business and doing several differnet transactions. You just had to spend a great deal for cashflow to really be unfavorable, despite higher profits. Reinvestment consists of two components: the disparity among the capital expenditure and the deterioration which is also termed as net capital expendture as well as the working capital impact (with diminishing cash flows increasing).
Answer:
A trade deficit.
Explanation:
Given that,
Value of exports = $293 billion
Value of imports = $405 billion
Balance of trade refers to the difference between a country's value of exports and its value of imports for a given time period.
Balance of trade:
= Value of exports - Value of imports
= $293 billion - $405 billion
= -$112 billion
Therefore, this country has a negative trade balance and it is reflected as a trade deficit.
Answer:
The answers are:
1. combined producer surplus = $69
2. Alice and Amber (b)
Explanation:
A producer surplus is the difference between how much a producer sells a product in the market, and how much he is willing to sell the product for, if the market price is higher than the price he was willing to sell the product for.
The combined producer surplus of the ladies is the sum of their individual producer surpluses, and it is calculated as follows;
Alice: willing price = $35, market price = $70, therefore surplus
= 70 - 35 = $35
Amber: willing price = $38, market price = $70, ∴ surplus = 70 - 38 = $32
Andy: willing price = $68, market price = $70, ∴ surplus = 70 - 68 = $2
Combined producer surplus = 35 + 32 + 2 = $69
b. In this case the price of the 5 inch pot in the market is $45, Alice and Amber will sell their pots because the price in the market exceeds their willing price of $35 and $38 respectively and they will make producer surpluses of $10 and $7 respectively, but Andi on the other hand will not sell her pot because if she does, she will make a loss, as her willing price is $68 and the market price is $45, if she goes ahead to sell she will incur a loss of $23.
