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OLEGan [10]
3 years ago
12

Suppose the United States is currently producing 200 tons of hamburgers and 60 tons of tacos and Mexico is currently producing 4

0 tons of hamburgers and 50 tons of tacos. If the United States and Mexico each specialize in producing only one good​ (the good for which each has a comparative​ advantage), then a total of _____ additional​ ton(s) of hamburgers can be produced for the two countries combined ​(enter a numeric response using an integer) and a total of _____ additional ton(s) of tacos can be produced.
Business
1 answer:
4vir4ik [10]3 years ago
5 0

Answer:

Explanation:

United States is producing 200 tons of hamburgers and 60 tons of tacos.

United States' opportunity cost for producing 1 ton of hamburgers

= \frac{60}{200}

= 0.3

United States' opportunity cost for producing 60 tons of tacos.

= \frac{200}{60}

= 3.33

So we see that US has a lower opportunity cost in producing hamburgers, so it has a comparative advantage in producing hamburgers.

Mexico is producing 40 tons of hamburgers and 50 tons of tacos.

Mexico's opportunity cost of producing a ton of hamburgers

= \frac{50}{40}

= 1.25

Mexico's opportunity cost of producing a ton of tacos

= \frac{40}{50}

= 0.8

So we see that Mexico has a lower opportunity cost in producing tacos, so it has a comparative advantage in making tacos.

Since US specializes in making hamburgers, it will produce 200 tons of hamburgers and 0 tons of tacos.

Mexico specializes in making tacos, it will produce 50 tons of tacos and 0 tons of hamburgers.

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The profit maximizing behavior of a monopoly is different from that of a perfectly competitive firm in that a monopoly can Quest
Lelechka [254]

Answer:

D) control the desired price and output to maximize profits, but a perfectly competitive firm can only choose the desired output.

Explanation:

Firms competing in perfectly competitive markets are price takers, meaning that they cannot set the price of their products or services, but monopolists can actually set the price of their products or services because their market power is high enough to do so. Also, a monopolist can choose to lower or increase its output depending on the resulting profits.

This excessive market power is the reason why natural monopolies are usually regulated by the governments and many monopolistic firms are forced to split into smaller firms that compete against each other.

7 0
3 years ago
Suppose an economy consists of three sectors: energy (e), manufacturing (m), and agriculture (a). sector e sells 70% of its outp
Luba_88 [7]

Answer:

(1) Pe =0.3Pm + 0.15 Pa

Pm = 0.7Pe + 0.2 Pm + 0.3 Pa

Pa = 0.3 Pe + 0.5Pm +0.55 Pa

(2) The free variable Pa = 100

Explanation:

Solution

We create a table of outputs using the given percentages economy distribution

Energy         Manufacturing       agriculture     Purchased by

0                       0.3                       0.15                 energy

0.7                    0.2                       0.3                  manufacturing

0.3                    0.5                       0.55                Agriculture

Let Pe Pm, Pa represent the prices for each sector

We then create an income equation using the expenses of the table above

Now,

Pe =0.3Pm + 0.15 Pa

Pm = 0.7Pe + 0.2 Pm + 0.3 Pa

Pa = 0.3 Pe + 0.5Pm +0.55 Pa

Note: Kindly find an attached copy of part of the solution to the given question and complete question to of this exercise below

3 0
3 years ago
The Baldwin Company currently has the following balances on their balance sheet: Total Liabilities $135,759 Common Stock $52,705
LiRa [457]

Answer:

The correct option is the third one,$250,687

Explanation:

The key to ascertaining is accounting equation which that assets equal capital plus liabilities.

This implies that by determining the capital and liabilities,total assets sorted out.

  Common stock                                    $52,705

  *Retained earnings for the year          $62,223

Total equity and retained earnings     $114,928

total liabilities                                        $135,759

Total equity and liabilities                     $250,687

Total assets=total equity and liabilities=$250,687

Retained earnings for the year=prior year retained earnings+net profit-dividends paid

prior year retained earnings $40,723

net profit is $36,500

dividends is $15,000

*retained earnings for the year=$40,723+$36,500-$15,000=$62223

8 0
2 years ago
A process with no beginning work in process, completed and transferred out 85500 units during a period and had 49400 units in th
AlekseyPX

Answer:

C. 95380 equivalent units

Explanation:

Equivalent units is the term used for proportionately equally completed units. This is basically used for allocation of overheads.

Here, actually completed that is 100% complete units = 85,500 units

Further units under work in process = 49,400

Which are 20% complete.

This means that incomplete 49,400 units = 49,400 \times 20% = 9,880 units 100% complete

Thus, total equivalent units = 85,500 + 9,880 = 95,380 units.

8 0
3 years ago
Baylor Bank believes the New Zealand dollar will appreciate over the next five days from $.48 to $.50. The following annual inte
Nitella [24]

Answer:

Its dollar profit from speculation over the five-day period will be <u>$208,035.93</u>.

Explanation:

This can be determined as follows:

Assuming Baylor Bank borrow $5,000,000

The borrowing will be converted to New Zealand dollar at the current exchange rate and we will have:

Conversion = $5,000,000 / 0.48 = NZ$10,416,667

The NZ$10,416,667 shall be invested at an annualized based on  New Zealand lending rate of 6.75% over five days. This will produce future value (FV) as follows:

FV of investment = Amount invested * (1 + NZ lending rate)^(5 years / 360 days) = NZ$10,416,667 * (1 + 6.75%)^(5 / 360) = NZ$10,426,121.44

Converting the NZ$10,426,121.44 to dollar at the new rate of $.50 as follows:

New conversion = NZ$10,426,121.44 * $.05 = $5,213,060.72

Amount to repay based on the US borrowing rate = Amount borrowed in USD * (1 + US borrowing rate)^(5 years / 360 days) = $5,000,000 * (1 + 7.5%)^(5 / 360) = $5,000,000 * 1.00100495826555 = $5,005,024.79

Profit = New conversion - Amount to repay = $5,213,060.72 - $5,005,024.79 = $208,035.93

Therefore, its dollar profit from speculation over the five-day period will be <u>$208,035.93</u>.

3 0
3 years ago
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