All categories

3 years ago

To achieve gains from trade, each nation should specialize in the production of a good or service if:

Business

1 answer:

irinina [24]3 years ago

3 0

Answer:

Explanation:

A country gains from trade if it specialises in the production of the good for which it has a comparative advantage

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries. this means that the country can produce the good by forgoing fewer alternative products

For example, country A produces 10kg of beans and 5kg of rice. Country B produces 5kg of beans and 10kg of rice.

for country A,

opportunity cost of producing beans = 5/10 = 0.5

opportunity cost of producing rice = 10/5 = 2

for country B,

opportunity cost of producing rice = 5/10 = 0.5

opportunity cost of producing beans = 10/5 = 2

Country A has a comparative advantage in the production of beans and country B has a comparative advantage in the production of rice

You might be interested in

however, larry's decision regarding how many workers to use can vary from week to week because his workers tend to be students.

stealth61 [152]

The correct answer is (B) Total output increases at a decreasing rate as you increase the quantity of labor.

The following table shows the marginal product of the labor inputs.

Its production function of Larry is given below.

The law of diminishing marginal product of labor is demonstrated by b. Total output increases at a decreasing rate as you increase the quantity of labor.

By definition, diminishing marginal product shows that the marginal product decreases as additional units of factors increase. However, the total output first increases at an increasing rate, then increases at a decreasing rate until it reaches the maximum peak point, after which it starts to fall.

The complete question is:

Larry's Performance Pizza is a small restaurant in New York City that sells gluten-free pizzas. Larry's very tiny kitchen has barely enough room for the two ovens in which his workers bake the pizzas. Larry signed a lease obligating him to pay the rent for the two ovens for the next year. Because of this, and because Larry's kitchen cannot fit more than two ovens, Larry cannot change the number of ovens he uses in his production of pizzas in the short run.

However, Larry's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Larry lets them know how many workers he needs for each day of the week. In the short run, these workers are _____ inputs and the ovens are _____ inputs.

Larry's daily production schedule is presented in the following table.

Fill in the blanks to complete the Marginal Product of Labor column for each worker.

Plot Larry's production function.

The law of diminishing marginal product of labor is demonstrated by which of the following?

a. Total output declines as you increase the quantity of labor,

b. Total output increases at a decreasing rate as you increase the quantity of labor.

c. Total output increase only when you increase both labor and ovens.

To learn more about production inputs please click on the given link: brainly.com/question/29023798

#SPJ4

3 0

1 year ago

In what ways is professional sport the same as any other job/employment?

abruzzese [7]

You get paid either way.

8 0

2 years ago

Corporate strategy for a diversified or multi-business enterprise chiefly concerns the development of a strategic vision a set o

harkovskaia [24]

Answer:

Corporate Strategy

Corporate strategy for a diversified or multi-business enterprise:

"concerns strategy initiatives to establish business positions in different industries, whether to hold or divest from existing businesses, strategic actions to boost the combined performance of the set of businesses the company has diversified into, and how to capture cross-business synergies, and then turn them into a competitive advantage."

Explanation:

Corporate strategy is concerned with market growth, stability, and organizational renewal. The purpose of corporate strategy is to achieve greater profitability, higher market share, and sustainable growth in revenue through product and market diversification. A corporate organization, in trying to grow, engages in business restructuring, establishing strategic partnerships, and achieving organizational excellence. These activities emanate from corporate strategic planning.

6 0

3 years ago

Suppose you want to invest $10,000. You have two options: Option #1: Invest in municipal bonds with an expected return of 8.00%,

Katyanochek1 [597]

Answer: 20%

Explanation:

Municipal Bonds are generally not taxed so if you invest in the Municipal bond, the tax rate does not affect you.

The tax rate therefore that will make you indifferent between the 2 options is the one that will take the Corporate bond returns of Jefferson to 8% so that both bonds may give you the same return after tax.

Assuming that tax rate is 'x' then,

8 = 10 (1 - x)

8 = 10 - 10x

10x = 10 - 8

10x = 2

x = 20%

At a tax rate of 20%, the Corporate bonds give an 8% return.

8 0

3 years ago

Mountain High Ice Cream Company transferred $74,000 of accounts receivable to the Prudential Bank. The transfer was made without

quester [9]

Answer:

Would handle this 2moro

Explanation:

7 0

3 years ago

Read 2 more answers