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

Author Question: Why do people specialize and trade? What will be an ideal ... (Read 78 times)

futuristic

  • Hero Member
  • *****
  • Posts: 638
on: Jun 29, 2018
Why do people specialize and trade?
 
  What will be an ideal response?

Question 2

How is average total cost calculated? If the total cost of producing 190 units of output is 355, what is the average total cost?
 
  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

dreamfighter72

  • Sr. Member
  • ****
  • Posts: 355
Reply #1 on: Jun 29, 2018
Answer to Question 1

People can compare consumption possibilities from producing all goods and services through self-sufficiency against specializing in producing only those goods and services that reflect their comparative advantage and trading their output with others who do the same. People can then see that the consumption possibilities from specialization and trade are greater than under self-sufficiency. Therefore it is in people's own self-interest to specialize. It was Adam Smith who first pointed out in the Wealth of Nations how individuals voluntarily engage in this socially beneficial and cooperative activity through the pursuit of their own self-interest, rather than for society's best interests.

Answer to Question 2

Average total cost is calculated by taking total cost and dividing by the number of units of output. Therefore, the average total cost is 355/190 = 1.87 .


futuristic

  • Member
  • Posts: 638
Reply 2 on: Jun 29, 2018
:D TYSM

covalentbond

  • Member
  • Posts: 336
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

Medication errors are more common among seriously ill patients than with those with minor conditions.

Did you know?

Cucumber slices relieve headaches by tightening blood vessels, reducing blood flow to the area, and relieving pressure.

Did you know?

Medications that are definitely not safe to take when breastfeeding include radioactive drugs, antimetabolites, some cancer (chemotherapy) agents, bromocriptine, ergotamine, methotrexate, and cyclosporine.

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Poverty rates have declined in the last 50 years, and the biggest decline has been for people 65 and ... Poverty rates have declined in the last 50 years, and the biggest decline has been for people 65 and ...
The Number of Children Americans Think Are Ideal The Number of Children Americans Think Are Ideal
The social movement that centers on the environment has become global. In all nations, people are ... The social movement that centers on the environment has become global. In all nations, people are ...
Transatlantic Slave Trade Transatlantic Slave Trade
Societal pressure to be thin can cause people to feel fat Societal pressure to be thin can cause people to feel fat
Famous People with Parkinson's Disease Famous People with Parkinson's Disease
Video: DNA Replication Factory and Protein

For a complete list of videos, visit our video library