Table 3-2 Hours Needed to Make 1 Unit of Number of Units Produced in 20 Hours Pastrami Milk Pastrami Milk England 1 4 20 5 France 5 2 4 10 Refer to Table 3-2. Assume that England and France each has 20 labor hours available. If each country divides its time equally between the production of cheese and wine, then total production is a. 12 units of pastrami and 7.5 units of milk. b. 20 units of pastrami and 12 units of milk. c. 12 units of pastrami and 20 units of milk. d. 20 units of pastrami and 7.5 units of milk.
Q: Consider the following problem. Demand: q = 100-p Retailer: marginal cost of selling r = 10 per unit…
A: Vertical integration is a term that describes the arrangement in which the supply chain of a…
Q: Please give typed solution, don't use handwriting or notebook for solution. Todd is driving his SUV…
A: If you own a car and are concerned aboutt the medical bills in case of an accident and you have a…
Q: EXERCISE 3 If Joe decides to allocate his entire weekly allowance between energy drinks and coffee,…
A: Budget Constraint is a function of good's prices and the income level . Budget Constraint : Income…
Q: 2. You have been asked to perform a sensitivity analysis on a plant modernization plan. The initial…
A: Initial Investment = 30000 Annual Savings = 13000 Useful life = 7 Salvage Value = 7000 MARR = 12%…
Q: Assume the price of a t-shirt in 2000 dollars was $6. If CPI in 2000 was 100 and in 2020 was 200,…
A: CPI or Consumer Price Index measures the total cost of goods and services bought by a typical urban…
Q: K For products A and B, the joint-cost function for a manufacturer is c The level of production that…
A:
Q: What statement is true for the perfect competitive market A) the long run equilibrium has zero…
A: Perfect competition: it refers to a market where there is less number of firms competing. This…
Q: 1. Marie is making 75 euros in beginning-of-month payments into an investment account. If the…
A: The formula to calculate the future value of the annuity due is: Annuity dueFuture Value = P(1+i)n -…
Q: Consider a oligopoly with two firms. Each firm has constant marginal cost of 3 dollar per unit and…
A: Nash equilibrium is the combination of outputs produced by both the firms where each firm has no…
Q: A firm employs two workers. Together, these workers produce 30 oranges. The firm hires a third…
A: Total product of labor refers to the total value of all the goods and services produced by all the…
Q: T or F Competitive firms' profit eventually erodes close to zero. Why?
A: In a competitive market, There are large no. of buyers and sellers. The firm produces where P =…
Q: what is the equilibrium income in this IS-LM model? Y = C +I +G C = 200+0.8(Y-T ) I = 1,600-100r G…
A: Equilibrium interest rate is determined where the IS curve intersects the LM curve. IS curve is…
Q: 2. A monopolist sells tours of a stately Montana home to two groups of consumers, Montanans (M) and…
A: The monopolists are the sellers that maximize their profit at the point when the marginal cost is…
Q: uppose for Home: Ms=2169, Md/P=5767-99865*R, P=2 Suppose for Foreign:Ms=2655, Md/P=7099-98140*R,…
A: Home Ms=2169 Md/P=5767-99865*R P=2 Foreign Ms = 2655, Md/P=7099-98140*R P=1
Q: 13. A monopolist faces a constant marginal cost of $1 per unit and has no fixed costs. If the price…
A: Lerner index measures the monopoly power. Following is the formula of the Lerner index (P-MC) / P =…
Q: A woman is considering giving an endowment to a university in order to provide payments of Php 55194…
A: The capitalized equivalent amount is the dollar amount that, if the cash-flow pattern is repeated…
Q: 1) Obtain the reaction function of the first firm. (2) Find the equilibrium (output and profit of…
A:
Q: Consider a simple economy that produces only pens. The following table contains information on the…
A: An inflationary gap estimates the gap between the current level of real GDP and the GDP that would…
Q: 2. Sam's is interested in two goods, X and Y. His indirect utility function is U* = M px-0.7…
A: Consumer surplus is the benefit that a consumer receives if he pays a price that is less than the…
Q: Leisure includes activities such as: O practicing your golf game. O teaching a college economics…
A: Leisure activity are the ones which are done in free time and not for work or fee just as leisure…
Q: Consider the following example. A risk-neutral worker can choose high or low effort. The worker's…
A: Expected value is a calculation of what you should expect to get per game in the long term. The…
Q: Discuss income inequality, measurement and causes.
A: The economy's uneven distribution of wealth and income is the root cause of the inequality issue.…
Q: a) If price is $9, which of the following is true? O. 1) The firm is earning a negative profit, but…
A: A perfectly competitive firm will produce where P = MC P is the market price MC is the marginal…
Q: Enchanted Kingdom (EK) has higher demand during Christmas (D1 = P1 = 20 - 0.02Q1) than in other…
A: Given information P1 = 20 - 0.02Q1--- Higher demand P1 = 2 - 0.002Q2--- normal demand Cost= Q +…
Q: Consider a consumer with the utility function U(F,C) = min(F,2C); that is, the two goods are perfect…
A: When two goods are perfect complements then these goods are consumed in a fixed proportion and the…
Q: If a short-run iso-profit line is defined as y=w1px1+∏+w2x′2py=w1px1+∏+w2x2′p then, an increase in…
A: The iso-profit line is a line which shows the combination of the inputs used in the production…
Q: 7. Classify each of the following as either a policy instrument or an intermediate target, and…
A: Policy: The actions taken by the government with the intention of influencing the economy of a city,…
Q: A competitive firm produces a product using the function f(x1,x2)=8x1/21x1/22f(x1,x2)=8x11/2x21/2.…
A: f(x1,x2) = 8x1x2p1=$2.50p2=$4Sub to: C = 2.5x1+4x2
Q: In the era of the Covid 19 pandemic, we are required to consume lots of fresh fruits. The…
A: 2 fruits: Apples (X) and Oranges (Y)Utility function:U = X3 Y2Budget constraint:M = PX X + PY YM =…
Q: In a college town, students choose between two providers of wireless internet access. All student…
A: Under a perfectly competitive market: A large number of buyers and sellers operate. All firms…
Q: the following demand and cost functions P is selling andQ is quantity in thousands P=30-2Q…
A: A Profit Maximizing Firm produces output at a level where Marginal Revenue is equal to Marginal Cost…
Q: Which of the following are examples of positive externalities. A. Pollution emissions from power…
A: Externalities: Externalities are situations in which the production or consumption of goods and…
Q: explain how a decrease in the real income of consumers would affect the market for luxury wallets…
A: A luxury good is one for which demand grows more than proportionately as income rises in economics.…
Q: The domestic demand and supply for oranges in Canada is outlined in the graph. The world price is $7…
A: A country imports when the domestic demand is greater than the domestic supply at the prevailing…
Q: Required Information For the five Independent projects given, the capital budget limit is $120,000,…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: Given: Desk purchased January 10 for $3,000; 8-year useful life; $600 salvage value. Calculate…
A: Given Purchasing price or basis (B) =$3000 Useful life =8 year Salvage value =$600 Depreciation…
Q: IC OM B D Life/years $320,000 $340,000 $400,000 $200,000 $45,000 $35,000 $110,000 $210,000 $20,000…
A: The benefit-cost ratio (BCR) is an indicator showing the connection between the relative costs and…
Q: In the short run, given a market price equal to $15 per romper, the firm should produce a daily…
A: General Equilibrium Theory is a macroeconomic theory that makes sense of how supply and demand in an…
Q: Which of the following reflects the Dead Weight Loss stemming from the Quota?
A: Quotas are the control or the limit placed on the quantity of the goods and services which are…
Q: You have $25,000 in an account that pays 6% interest compounded annually. You want to make equal…
A: Deposit in Year 1 = $25000Annually compounded interest rate = 6%Duration = 8 years
Q: Answer the following questions regarding the Keynesian perspective. From a Keynesian point of…
A: "Since you have posted a question with multiple sub-parts,we will provide the solution only to the…
Q: Suppose demand for good 1 is given by pi = 26- 3¹ and demand for good 2 is given by p2 = 72 — 292.…
A: Given: The demand function for good 1: p1=26-3q12 The demand function for good 2: p2=72-2q2 Cost…
Q: Exclusivity is granted for the following reasons: To delay the approval of competitor drugs When a…
A: The inventors and producers of new invention tries to earn money through patents. An exclusive…
Q: EXERCISE 1 Pam has a monthly budget of £120 to be spent on T-shirts and trainers. She could afford…
A: Budget constraint: given the price of 2 goods and consumer’s income. The budget constraint shows…
Q: Suppose that we are in a market dominated by a monopolist. Market demand is given by: Q=222-2p The…
A: A monopoly is a market condition in which there is a single seller selling services and goods in the…
Q: 9. If the demand for reserves did not fluctuate, the Fed could pursue both a reserves target and an…
A: . Monetary policy is typically defined as either expansionary or restrictive. Reserve The term…
Q: Considered the following data for an economy. Currency in circulation held by the public: CU = 400…
A: Monetary base is the sum of reserve and currency in circulation. So, Reserve is the difference…
Q: Decreasing the discount rate is an expansionary policy stance because consumers and businesses can…
A: Discount rate – The discount window is used to lend money to banks to meet the reserve requirement.…
Q: Using DD-AA-XX curves, compare the effect on the current account of temporary and permanent…
A: The AA and DD model is described using a diagram that consists of two curves as shown below.…
Q: The Federal Reserve can use expansionary/contractionary policy to shift the AD curve. Use the AD–AS…
A: Aggregate demand is the sum of Consumption spending , investment spending , government spending and…
Table 3-2
Hours Needed to Make 1 Unit of | Number of Units Produced in 20 Hours | |||
Pastrami | Milk | Pastrami | Milk | |
England | 1 | 4 | 20 | 5 |
France | 5 | 2 | 4 | 10 |
Refer to Table 3-2. Assume that England and France each has 20 labor hours available. If each country divides its time equally between the production of cheese and wine, then total production is
a. |
12 units of pastrami and 7.5 units of milk. |
|
b. |
20 units of pastrami and 12 units of milk. |
|
c. |
12 units of pastrami and 20 units of milk. |
|
d. |
20 units of pastrami and 7.5 units of milk. |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The following table shows the production possibilities for the country of Erewhon: A CDEF Wine 10 18 24 28 30 Cheese 40 28 18 10 4 0 What is the total cost of producing the first 10 units of wine? O a. 24 units of cheese O b. 28 units of cheese O c. 12 units of cheese O d. 6 units of cheese B.1. The countries France and Italy produce Perfumes and Leather Coats using only labor as an input. AvailableLabor for France and Italy is 3000 and 1000 respectively. Unit of labor per Leather Coat in France is 6 units and inItaly are 2 units. France needs 2 units of labors to produce 1 bottle of Perfume and Italy needs 4 unit of labor. a) Draw the Production Possibility Curve by using relevant information. b) Which country has the comparative advantage in producing Perfume?Table 3-3 Assume that Aruba and Iceland can switch between producing coolers and producing radios at a constant rate. Aruba Iceland Labor Hours Needed to Make 1 Radio 5 4 Cooler 2 1 Refer to Table 3-3. Assume that Aruba and Iceland each has 80 labor hours available. If each country divides its time equally between the production of coolers and radios, then total production is 60 coolers and 80 radios. 18 coolers and 40 radios. 18 coolers and 60 radios. 60 coolers and 18 radios.
- Potatoes (tons) 8 100 200 300 400 500 Sausages (tons) 400 350 300 a. If the two countries decided to combine their resources, what is the maximum amount of potatoes the two countries could produce? O 250 tons O 500 tons O 1,000 tons 750 tons 250 b. If the two countries decided to combine their resources, what is the maximum amount of sausages the two countries could produce? 200 Sausages (tons) 158 128 98 150 100 250 tons 350 tons c. If the two countries specialize and produce the good in which they have a comparative advantage. what is the maximum combination of potatoes and sausages they can produce together? 50 60 30 8 150 tons 750 tons O 750 tons of potatoes and 350 tons of sausages 500 tons of potatoes and 200 tons of sausages 650 tons of potatoes and 450 tons of sausages 250 tons of potatoes and 150 tons of sausages d. Using the three combined amounts of production, graph the combined production possibilities frontier for Ireland and Scotland. Instructions: Use the tool provided…-50 Eleanor and her little brother Josh are responsible for two chores on their family's farm, gathering eggs and collecting milk. Eleanor can gather 10 dozen eggs or collect 5 gallons of milk per week. Josh can gather 2 dozen eggs or collect 2 gallons of milk per week. a. The family wants 2 gallons of milk per week and as many eggs as the siblings can gather. Currently, they collect one gallon of milk each and as many eggs as they can. How many dozens of eggs does the family have per week? ‒‒‒‒ (Click to select) Edozen eggs. b. If the siblings were to specialized, which should collect the milk? (Click to select) c. If the siblings were to specialize, how many dozens of eggs would the family have per week? (Click to select) dozen eggs.Firm A Firm B 18- 14- 16 14- 12 10- 12 8 10- B. 8- 6- 4- 2- 2- 10 12 14 16 18 20 22 10 Corn Corn Part A What is the opportunity cost of one unit of barley for Firm A?O What is the opportunity cost of one unit of barley for Firm B? Give your answers as fractions. Part B What is the opportunity cost of one unit of corn for Firm A? What is the opportunity cost of one unit of corn for Firm B? Give your answers as fractions. Part C In which good does Firm A have a comparative advantage? In which good does Firm B have a comparative advantage? Part D In what good or goods does Firm A have an absolute advantage? In what good or goods does Firm B have an absolute advantage? Part E Suppose Firm A and Firm B divide their time equally between the production of both goods. What will be the total production of corn? units Now suppose both firms completely specialize in the product in which they have a comparative advantage and trade with one another.
- Assume that Henry and Madeleine can switch between producing parasols and producing porcelain plates at a constant rate. Labor Hours Quantity Needed to Make 1 Plate 2 Produced in 36 Hours Parasol Parasol Plate 18 6 Henry Madeleine2 Assume that Henry and Madeleine each has 36 labor hours available. If each person divides his/her time equally between the production of parasols and plates, then total production is a.18 parasols and 6 plates. b.18 parasols and 7.5 plates. c. 16 parasols and 12 plates. d.36 parasols and 15 plates. 4 18 9Table 3-3 Labour hours needed to make one unit: Quilts Helen Carolyn 40 80 Dresses 10 16 Refer to Table 3-3. How could Helen and Carolyn both benefit? Amount produced in 160 hours: Quilts Dresses 4 2 O a. by Helen specializing in both goods and Carolyn specializing in neither good O b. by Helen specializing in neither good and Carolyn specializing in both goods O c. by Helen specializing in quilts and Carolyn specializing in dresses O d. by Helen specializing in dresses and Carolyn specializing in quilts 16 10Alexi and Tony own a food truck that serves only twoitems, street tacos and Cuban sandwiches. As shownin the table, Alexi can make 80 street tacos per hourbut only 20 Cuban sandwiches. Tony is a bit faster andcan make 100 street tacos or 30 Cuban sandwiches inan hour. Alexi and Tony can sell all the street tacos andCuban sandwiches that they are able to produce.Output Per HourStreet Tacos Cuban SandwichesAlexi 80 20Tony 100 30a. For Alexi and for Tony, what is the opportunity cost of a street taco? Who has a comparative advantage in the pro-duction of street tacos? Explain your answer. b. Who has a comparative advantage in the production ofCuban sandwiches? Explain your answer. Assume that Alexi works 20 hours per week in thebusiness. Assuming Alexi is in business on his own, graphthe possible combinations of street tacos and Cubansandwiches that he could produce in a week. Do the samefor Tony.d. If Alexi devoted half of his time (10 out of 20 hours) tomaking street tacos and half of…
- France and Poland each have one worker whosemonthly linear Production PossibilityFrontier indicatesthe following production possibilities: PolandFranceComputers (C) 246Grain (G) 43 a)France’sopportunity cost of G in terms of units of C equals ______ ? b) Poland’sopportunity cost of G in terms of units of C equals ______ ?For the followingparts, please complete the questions by filling in the blank, and responding toremainderof the question: c) Poland’scomparative advantage is in ______ because: d) If France and Poland decide to trade, _________ will be theexporter of G while ______ will bethe importer because: e) If the economies choose to trade, the world relative priceof goods must be ________ in orderfor trade to be mutually beneficial, because:France and Poland each have one worker whosemonthly linear Production PossibilityFrontier indicatesthe following production possibilities: PolandFranceComputers (C) 246Grain (G) 43 a) France’sopportunity cost of G in terms of units of C equals ______ ? b) Poland’sopportunity cost of G in terms of units of C equals ______ ?For the followingparts, please complete the questions by filling in the blank, and responding toremainderof the question: c) Poland’scomparative advantage is in ______ because: d) If France and Poland decide to trade, _________ will be theexporter of G while ______ will bethe importer because: e) If the economies choose to trade, the world relative priceof goods must be ________ in orderfor trade to be mutually beneficial, because: 4.In the following problem, assume that the UK currency is the pound sterling (PST)and thecurrency in the restof the Europe is the euro (EUR). Suppose that thePST appreciates relative to the EUR. For the following parts, you will…lexi and Tony own a food truck that serves only two items, street tacos and Cuban sandwiches. As shown in the table, Alexi can make 80 street tacos per hour but only 20 Cuban sandwiches. Tony is a bit faster and can make 100 street tacos or 30 Cuban sandwiches in an hour. Alexi and Tony can sell all the street tacos and Cuban sandwiches that they are able to produce.Output Per HourStreet Tacos Cuban SandwichesAlexi 80 20Tony 100 30a. For Alexi and for Tony, what is the opportunity cost of a street taco? Who has a comparative advantage in the pro-duction of street tacos? Explain your answer.b. Who has a comparative advantage in the production of Cuban sandwiches? Explain your answer.c. Assume that Alexi works 20 hours per week in the business. Assuming Alexi is in business on his own, graph the possible combinations of street tacos and Cuban sandwiches that he could produce in a week. Do the same for Tony.d. If Alexi devoted half of his time (10 out of 20 hours) to making street tacos…