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Mkey [24]
3 years ago
10

Explain how the Cycle of Good Times turned into the Cycle of Bad Times

Social Studies
1 answer:
Maslowich3 years ago
5 0

Turning Hard Times into Good Times is broadcast live every Tuesday at 12 Noon Pacific Time on the VoiceAmerica Business Channel. Jay Taylor has been able to more than double his newsletter’s model portfolio from 2000 to the present even as the S&P 500 was in the process of losing 50% of its value!

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the chart below shows a production possibility schedule for a pastry shop that makes $0.50 profit per donut and $0.75 profit per
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The choice of <u>dedicating all the available resources to the production of only bagels</u> presents the lowest opportunity cost.

The expected profit per unit is the only data provided about the production process in the pastry shop. Therefore, those the two figures provided already contain information about the production costs of donuts and bagels, the market prices and the sold quantities, in order to deduce the profit that each product would generate.

In this situation, as the bagels make a higher profit per unit, the best option for the company would be chosing to dedicate all its resources to the production of bagels, because if not, when selling a donut the opportunity cost per unit of product would be 0.25, plus the things that the company will not be able to purchase that would have been possible if they had those extra 0.25 per unit.

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