This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose country X can produce a personal computer at an opportunity cost of 1000 t-shirts. Assume ... (Read 35 times)

eruditmonkey@yahoo.com

  • Hero Member
  • *****
  • Posts: 546
on: Jun 29, 2018
Suppose country X can produce a personal computer at an opportunity cost of 1000 t-shirts. Assume that country X has a comparative advantage in the production of t-shirts.
 
  Would country X ever agree to terms of trade with country Y such that one personal computer would be exchanged for 1100 t-shirts?

Question 2

Assume that a health spa can earn an additional 35,000 of revenue each year from advertising every day in a local newspaper. What must the additional cost of this daily advertising be to make this advertising economically rational?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

tuate

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jun 29, 2018
Answer to Question 1

There would be no reason for country X to agree to such terms of trade. If country X can already produce one personal computer at an opportunity cost of 1000 t-shirts why would it agree with country Y to purchase a computer for 10 higher? The answer is it would not.

Answer to Question 2

The additional cost of the daily advertising must be no more than 35,000 for the year to make advertising economically rational.


eruditmonkey@yahoo.com

  • Member
  • Posts: 546
Reply 2 on: Jun 29, 2018
Wow, this really help

bassamabas

  • Member
  • Posts: 294
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

No drugs are available to relieve parathyroid disease. Parathyroid disease is caused by a parathyroid tumor, and it needs to be removed by surgery.

Did you know?

The FDA recognizes 118 routes of administration.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

Coca-Cola originally used coca leaves and caffeine from the African kola nut. It was advertised as a therapeutic agent and "pickerupper." Eventually, its formulation was changed, and the coca leaves were removed because of the effects of regulation on cocaine-related products.

A client is having an endoscopy performed by a physician who views the upper gastrointestinal intern A client is having an endoscopy performed by a physician who views the upper gastrointestinal intern
Frequently Used Computer Terms Frequently Used Computer Terms
Dosimeter or personal radiation badge. Dosimeter or personal radiation badge.
For millions of people, the United States represents a land of opportunity and freedom from ... For millions of people, the United States represents a land of opportunity and freedom from ...
A spark plug thread chaser is a low-cost tool that hopefully will not be used often, but is ... A spark plug thread chaser is a low-cost tool that hopefully will not be used often, but is ...
Computer Organization and Architecture Computer Organization and Architecture
Video: Helper T cell receptors, activation, proliferation, differentiation & action

For a complete list of videos, visit our video library