Answer:
Martha can produce 70 quilts or 140 batches of chocolate chip cookies:
Opportunity cost of producing a quilt = (140 ÷ 70)
= 2 batches of chocolate chip cookies
Opportunity cost of producing a batch of chocolate chip cookie = (70 ÷ 140)
= 0.5 quilts
Jane can produce 8 quilts or 24 batches of chocolate chip cookies:
Opportunity cost of producing a quilt = (24 ÷ 8)
= 3 batches of chocolate chip cookies
Opportunity cost of producing a batch of chocolate chip cookie = (8 ÷ 24)
= 0.33 quilts
Therefore, the comparative advantage is as follows:
Martha has a comparative advantage in producing quilt because it has a lower opportunity cost of producing quilt than Jane.
Jane has a comparative advantage in producing chocolate chip cookies because it has a lower opportunity cost of producing chocolate chip cookies than Martha.
Absolute advantage:
Martha has an absolute advantage in producing both the commodities because she can produce more amount of both the goods from the same level of resources as compared to Jane.
Answer:
Recognized gain = $60000
Explanation:
Below is the calculation:
Price of personal resident = $400000
Selling price = $460000
Since Alan purchased the house for $400000 and selling it for $460000. Therefore recognized gain can be determined by subtracting the purchase price from the selling price.
Recognized gain = $460000 - $400000
Recognized gain = $60000
Because they need to do you have any knowledge of some sort
Answer: 10 months
Explanation:
It would take the Hendersons 10months to recover their cost if they decide to do it themselves over the professional service.
Here is how;
Doing it themselves would cost -
$250 - For a lawnmower
$135 - For an edger
$69 - For a hedge trimmer
$25 - For a rake
Summing these up gives $479
It would cost the Hendersons $479 to purchase equipments to carry out their monthly yard maintenance themselves.
On the other hand, if they were to hire a professional service, it would cost
• $75 for the first month and
• $45 for subsequent months
So, $45 * 9months = $405
$405 + $75 (for the initial month) = $480
Comparing the $480 for a professional to the $479 it would cost to purchase equipment and do it themselves, it would take the Hendersons 10months to recover their cost if they decide to do it themselves over the professional service.
