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

Author Question: Compare and contrast absolute advantage and comparative advantage. What will be an ideal ... (Read 165 times)

storky111

  • Hero Member
  • *****
  • Posts: 561
on: Jun 29, 2018
Compare and contrast absolute advantage and comparative advantage.
 
  What will be an ideal response?

Question 2

How do firms make investment decisions?
 
  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

memslove

  • Sr. Member
  • ****
  • Posts: 321
Reply #1 on: Jun 29, 2018
Answer to Question 1

Absolute advantage refers to the ability of a person or nation to produce a good or service using fewer inputs than another person or nation. In contrast comparative advantage is when a good or service can be produced at a lower opportunity cost than another person or nation.

Answer to Question 2

To determine the quantity of investment, firms compare the expected profit rate from an investment to the real interest rate. The expected profit from an investment is the benefit from the investment. The real interest rate is the opportunity cost of investment. If the expected profit from an investment exceeds the cost of the real interest rate, then firms make the investment. If the expected profit from an investment is less than the cost of the real interest rate, then firms do not make the investment.


storky111

  • Hero Member
  • *****
  • Posts: 561
Reply #2 on: Jun 29, 2018
Thank you


memslove

  • Sr. Member
  • ****
  • Posts: 321
Reply #3 on: Jun 29, 2018
No problemo


« previous next »
 

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Hypertension is a silent killer because it is deadly and has no significant early symptoms. The danger from hypertension is the extra load on the heart, which can lead to hypertensive heart disease and kidney damage. This occurs without any major symptoms until the high blood pressure becomes extreme. Regular blood pressure checks are an important method of catching hypertension before it can kill you.

Did you know?

Asthma occurs in one in 11 children and in one in 12 adults. African Americans and Latinos have a higher risk for developing asthma than other groups.

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

Retrograde pyelography (RP). Note the contrasting of the renal calyces, ureters, and bladder followi Retrograde pyelography (RP). Note the contrasting of the renal calyces, ureters, and bladder followi
Radiology Procedures Not Requiring Contrast Media Radiology Procedures Not Requiring Contrast Media
Comparative substrate cycles in glycolysis/gluconeogenesis Comparative substrate cycles in glycolysis/gluconeogenesis
How reciprocal functions compare to the parent function How reciprocal functions compare to the parent function
If CP for an ideal gas is 35.4 J/molK, which of the following is CV for this gas? If CP for an ideal gas is 35.4 J/molK, which of the following is CV for this gas?
Bar-eye phenotypes in contrast to the wild-type eye in Drosophila Bar-eye phenotypes in contrast to the wild-type eye in Drosophila
Video: Factors that affect conduction rates (myelination, axon diameter & temperature)

For a complete list of videos, visit our video library