Answer:
D. Neither country could gain from trade with each other because neither one has a comparative advantage
Explanation:
Opportunity cost refers to the units sacrificed from production of one good to produce an extra unit of another good.
In the given case, the number of workers are same.
The opportunity cost for producing corn instead of oats by Cornland would be : 10/40 units of oats = 0.4 units of oats
Similarly, the opportunity cost for producing corn by Oatland = 5/ 20 = 0.4 units of oats
Similarly, the opportunity cost for producing oats by Cornland = 4 units of corn
Opportunity cost for producing oats by Oatland = 4 units of corn.
As can be seen, none of the two i.e Cornland or Oatland enjoys a comparative advantage over other since for both, the opportunity cost is the same.
Hence, neither country would gain out of trade.
Answer:
$22,200
Explanation:
Particulars Amount
Cost of Goods Sold $19,400
Ending inventory Finished Goods <u>$2,800</u>
Cost of goods available for sale <u>$22,200</u>
Answer:
B. FALSE
Explanation:
This economy is currently at its natural rate of unemployment because there is <u>no cyclical unemployment</u>
In macroeconomics, <u>full employment is the level of employment rates where there is no cyclical or deficient-demand unemployment. </u>
<u>The economy is considered to be at full employment when the actual unemployment rate is equal to the natural rate</u>.
Hence, it is false to allege that the economy in the given scenario is not currently at its natural rate of unemployment
Answer:
Cost per unit of widget produced = $6.52
Explanation:
As for the provided information:
Total units produced = 4,600 units
Total cost of production = costs for Department 1 + Department 2 + Department 3
= $18,000 + $8,000 + $4,000 = $30,000
It does not matter how many units are sold as the cost of sales will include, selling and administrative cost also.
Therefore, all the cost will be considered.
Thus total cost of production = $30,000 for 4,600 units.
Cost per unit of widget = 
