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 48 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
Excellent

AISCAMPING

  • Member
  • Posts: 347
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

There are approximately 3 million unintended pregnancies in the United States each year.

Did you know?

The Food and Drug Administration has approved Risperdal, an adult antipsychotic drug, for the symptomatic treatment of irritability in children and adolescents with autism. The approval is the first for the use of a drug to treat behaviors associated with autism in children. These behaviors are included under the general heading of irritability and include aggression, deliberate self-injury, and temper tantrums.

Did you know?

Alcohol acts as a diuretic. Eight ounces of water is needed to metabolize just 1 ounce of alcohol.

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

Did you know?

The average office desk has 400 times more bacteria on it than a toilet.

A second jetliner approaches the south tower of the World Trade Center on September 11, 2001. The no A second jetliner approaches the south tower of the World Trade Center on September 11, 2001. The no
Wall painting with giraffes, zebra, eland, and abstract shapes, San people, Inanke Cave, Matobo ... Wall painting with giraffes, zebra, eland, and abstract shapes, San people, Inanke Cave, Matobo ...
Cultures Ideal Body Types Cultures Ideal Body Types
Do you see animals or people first? Do you see animals or people first?
A very light ideal spring stretches by when it is used to hang a 135-N object. What is the ... A very light ideal spring stretches by when it is used to hang a 135-N object. What is the ...
People with Huntington disease develop problems with neuromuscular control and gradually lose the us People with Huntington disease develop problems with neuromuscular control and gradually lose the us
Video: How to find out if a population is evolving?

For a complete list of videos, visit our video library