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 36 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
Excellent

chjcharjto14

  • Member
  • Posts: 342
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

The Increasing Cost of Health Care, 1960–2010 The Increasing Cost of Health Care, 1960–2010
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 ...
Many electronic components are used to construct a typical vehicle computer. Notice the quantity of ... Many electronic components are used to construct a typical vehicle computer. Notice the quantity of ...
Checking the 5 volt reference from the computer being applied to the TP sensor with the ignition ... Checking the 5 volt reference from the computer being applied to the TP sensor with the ignition ...
How many grams of NO are required to produce 145 g of N2 in the following reaction? 4NH3 + 6NO ... How many grams of NO are required to produce 145 g of N2 in the following reaction? 4NH3 + 6NO ...
One year ago, Christos bought 1000 units of the Dominion Aggressive Growth Fund at $20.35 per ... One year ago, Christos bought 1000 units of the Dominion Aggressive Growth Fund at $20.35 per ...
Video: Chemical Changes

For a complete list of videos, visit our video library