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 74 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
Thanks for the timely response, appreciate it

Animal_Goddess

  • Member
  • Posts: 339
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

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?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

Chronic necrotizing aspergillosis has a slowly progressive process that, unlike invasive aspergillosis, does not spread to other organ systems or the blood vessels. It most often affects middle-aged and elderly individuals, spreading to surrounding tissue in the lungs. The disease often does not respond to conventionally successful treatments, and requires individualized therapies in order to keep it from becoming life-threatening.

More People Are Living in Cities More People Are Living in Cities
Despite the globe’s vast social change, people all over the world continue to make race a ... Despite the globe’s vast social change, people all over the world continue to make race a ...
Do you see animals or people first? Do you see animals or people first?
Global Links: African Slave Trade Global Links: African Slave Trade
Out of Many: A History of the American People Out of Many: A History of the American People
Sensory Crossover Device for Visually Impaired People Sensory Crossover Device for Visually Impaired People
Video: Corpus Callosum Animation

For a complete list of videos, visit our video library