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 42 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
Thanks for the timely response, appreciate it

rleezy04

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

People often find it difficult to accept the idea that bacteria can be beneficial and improve health. Lactic acid bacteria are good, and when eaten, these bacteria improve health and increase longevity. These bacteria included in foods such as yogurt.

Did you know?

Eating food that has been cooked with poppy seeds may cause you to fail a drug screening test, because the seeds contain enough opiate alkaloids to register as a positive.

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Examples of the most common X-ray positions and the images they produce. Examples of the most common X-ray positions and the images they produce.
Weak valve springs will produce a normal reading at idle, but as engine speed increases, the needle ... Weak valve springs will produce a normal reading at idle, but as engine speed increases, the needle ...
Computer Literacy for IC3, Unit 2: Using Productivity Software, Update to Office 2013 & Windows ... Computer Literacy for IC3, Unit 2: Using Productivity Software, Update to Office 2013 & Windows ...
Let A ⊆ R and p ∈ A. Suppose A\{p}6= ∅. Prove that p is an isolated point of A if and ... Let A ⊆ R and p ∈ A. Suppose A\{p}6= ∅. Prove that p is an isolated point of A if and ...
Suppose that we have a sample space with five equally likely experimental outcomes: E1, E2, E3, ... Suppose that we have a sample space with five equally likely experimental outcomes: E1, E2, E3, ...
Floral components. Anthers produce pollen and ovules produce eggs. Floral components. Anthers produce pollen and ovules produce eggs.
Video: Lactation and Breast Feeding

For a complete list of videos, visit our video library