Answer:
- Gibb's opportunity cost of solving a crime = 3 wooden boats / 30 = 0.1 wooden boats
- DiNozzo's opportunity cost of solving a crime = 1 wooden boat / 20 = 0.05
Even though DiNozzo has a comparative advantage in solving crimes (0.05 wooden boats per crime < 0.1 wooden boats per crime), Gibb's has an absolute advantage in solving crimes because he can solve 30 while DiNozzo can only solve 20 (Gibbs has also an absolute advantage in building wooden boats).
If I were not to be able to go to the meeting, who do I call?
What day is it on?
What kind of outdated methods?
<u>Answer:
</u>
If all firms in a competitive industry are legally required to meet new regulations that increase their costs of production, the supply of goods would decrease.
<u>Explanation:
</u>
- In order to comply with the new regulations in place and still keep the business profitable, the businesses would choose to decrease production in order to keep the initial cost of production in control (or in the range that it was in before the introduction of new regulations).
- The firms would take steps in order to avoid market fluctuation and the step of decreasing the production of goods to keep the price stable would be one of those steps.
Answer:
Option (b) is correct.
Explanation:
Given that:
Spot price for the Japanese yen is ¥129.87/$ i.e 1 yen = 1/129.87 = $0.007700
6- month forward rate is ¥128.53 $i.e
1 yen = $0.00780
Yen will move to ¥128.00/$ in the next six months i.e.
1 yen = 1/128
= $0.007813
Here there is opportunity of profit when he purchase yen at forward rate of:
$0.007800 i.e at ¥128.53/$ and sells at 0.007813 i.e at ¥128.00/$ making a profit of $0.000013 per yen.
Therefore, the correct answer is option B i.e buying yen for ¥128.53/$; selling yen at ¥128.00/$.