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3 years ago

Can somebody help me with this honestly im just to lazy (35 points)

Business

2 answers:

makvit [3.9K]3 years ago

7 0

Answer:

so it is 0 percent because it makes more sense then other question

Explanation:

mafiozo [28]3 years ago

3 0

Answer:

is... is that a crossword

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3 years ago

If a drought ruins a significant amount of the coffee crop, then we would expect the price of

NikAS [45]

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3 years ago

What is the range for the relative price of cloth such that the economy produces both cloth and food? From _______ to _______ .

dezoksy [38]

The answer is explained in detail below

Explanation:

$a_{KC} = 2$

$a_{LC} = 2$

$a_{KF} = 3$

$a_{LF} = 1$

Labor, L = 2000; Capital, K = 3000

Labour constraint,

$2Q_{c} + Q_{F} \leq 2000$

Capital constraint ,

$2Q_{c} + 3Q_{F} \leq 3000$

Solving the equation further, we get

$Q_{F} \leq 2000 - 2Q_{C}$

$Q_{F} \leq 1000 - \frac{2}{3} Q_{C}$

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

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3 years ago