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galben [10]
3 years ago
5

Debt financing definition ​

Business
1 answer:
olga nikolaevna [1]3 years ago
7 0
Debt is an obligation that requires one party, the debtor, to pay money or other agreed-upon value to another party, the creditor. Debt is a deferred payment, or series of payments, which differentiates it from an immediate purchase.
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Consider two neighboring island countries called Euphoria and Contente. They each have 4 million labor hours available per week
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Explanation:

here is an explanation and solution to your question

For Euphoria:

The opportunity cost of producing a unit of rye in terms of jeans =20/5 = 4

for contente:

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opportunity cost of producing 1 unit of jean in terms of unit of rye:

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for contente = 8/16 = 1/2

1.

Euphoria's opportunity cost of producing a a bushel of rye is 4 pairs of jeans.

contentes opportunity cost of producing a bushel of rye is 2 pairs of jeans.

2.

contente has comparative advantage in producing rye

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3

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euphoria 20 pairs of jean in a week, using 4 million hours of labor. 20x4 = 80 pairs of jean a week

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