b. Explain the term comparative advantage. Based on the information above, calculate which country has a comparative advantage in coconut production and explain why you think the country has a comparative advantage in coconut production.

b. Explain the term comparative advantage. Based on the information above, calculate which country has a comparative advantage in coconut production and explain why you think the country has a comparative advantage in coconut production.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Describe the Fundamental Principles in Engineering Economics?

A: Engineering economics uses economic procedures for the purpose of designing evaluation and other…

Q: · Opportumity cost is: Ta) That which we forgo or give up, when we make a choice or a decision. (b)…

A: In the production process, inputs are used to produce the final output. Costs of production are the…

Q: e ore of a gold nine in the Mo ntains, on the average, 0.5 gram of gold per tor thod A of processing…

A: The net value or net profit is the difference between the total profit and the total cost.

Q: This does not solve for the Present Worth of Costs

A: Two design alternatives: 1) Steel Girder 2) Concrete Girder Initial cost of Steel Girder = $2.25…

Q: 100 90 80 ATC 70 50 30 AVC 20 MC 10 + 0 0 5 10 15 20 25 30 35 40 45 50 QUANTITY (Thousands of pans)…

A: In perfect competition we assume that the marginal cost curve is same as the supply curve. The below…

Q: PLS HELP ASAP ON BOTH

A: 1) The correct symbol for a double V-groove weld that must be examined in the field by ultrasonic…

Q: The yariablecosts incured by the business in the curent period per unit of output is: (aDThe average…

A: Marginal input cost (MIC) is the cost of using an additional unit of variable input; restated, it is…

Q: Define the term engineering economic decisions?

A: Engineering economics is the Application of economic principle in the analysis of decision making in…

Q: The owner shop is contemlating adding anew product which will require additional mouthly payment of…

Q: For Part A, could you format it in a different way thats easier to read. I can't follow what the…

A: Price elasticity of demand for a good is estimated to know about the changes in the quantity…

Q: The owner shop is contemlating adding anew product which will require additional mouthly payment of…

A: The breakeven point is the level of production at which the costs of production equal the revenues…

Q: Number of TVs Per Day Total Cost Per Day 0 $100 1 $180 2 $220 3 $300 4 $400 5 $520 6 $660 The…

A: Average total cost = Total cost / output

Q: sWhat is Salvage value?

A: Salvage value refers to that amount of fixed asset which remains unallocated in the form of…

Q: Use the values in the table below to answer the following questions. MC TC АТС 46.47 15.49 20.13 -(…

A: Average total cost is the ratio of total cost and quantity. ATC = TC/Q TC = ATC*Q

Q: Question: Write 5 Usual Objectives In Conducting Engineering Economic Analysis.

A: In conducting engineering economic analysis, there are 5 commonly pursued objectives:-

Q: New technicians in an oncology department process patients at rates shown below. Steady state occurs…

A: A learning curve is a visual or mathematical depiction of the enhancement in effectiveness or…

Q: Company X sells Christmas Lights for 450 pesos. The variable cost is 200 pesos per unit while the…

A: Formula is,Quantity of units required to achieve the goal = [Fixed cost + Profit] / [Price -…

Q: 1 Grass sod cost 35.00 per square meter and fencing cost 100.00 a linear foot. Display the total…

A: Economics is a branch of social science that describes and analyzes the behaviors and decisions…

Q: Give some examples of the project cash flow?

A: Project cash flow is the net amount associate with a project during a period of time.

Q: and hot cider for leunch and Spert a tetel of $10.25 the Sandwich Goer. Uhet wes the costef each…

A: Natalie bought a sandwich and a hot cider for lunch. Let the number of sandwich be x and price she…

Q: When, GVA factor cost = $ 512 Production taxes = $12 then calculate the gross value added at…

A: Answer: Given, GVA factor cost = $ 512 Production taxes = $12 The formula to calculate gross value…

Q: PLS HELP ASAP ON BOTH

A: 1.A lamellar tear is a type of defect that occurs beneath a weld, within the parent material. It…

Q: A United States based Airline bought an airplane from a German Manufacturer for $1 Million.…

A: Consumption (C): This includes the spending by households on goods and services. In this scenario,…

Q: A manufacturing plant wishes to buy a new equipment so the purchasing department did some research…

A: Given that; A company is considering two types of equipment for its manufacturing plant.

Q: Question 39 Use the values in the table below to answer the following questions. Q TC ATC MC 3 20.48…

A: Total cost refers to the sum of all expenses incurred by a company in producing goods or providing…

Q: 8. A 1.25 acre lawn is to be sodded with Cavalier zoysiagrass, which can be delivered at a cost of…

A: The total cost of sodding 1.25-acre lawn = Cost of sodding per square yard * Total square yards

Q: I am having difficulty understanding the concepts in this problem. C

A: Law of diminishing returns: It refers to an economic principle under which when a firm increases its…

Q: Astume thit a company consisting of four divisions is considening three investment projects, A, 8…

A: In economics, it is said that when an individual enters the market, he will try to make rational…

Q: What Is Worldwide Sourcing Timeline?

A: The worldwide sourcing is a process in which the global markets are used for the production of goods…

Q: Tatal Fixed Cost (TFC) Tatal Variable Tatal Cast Ouput AFC AVC ATC I MC (TPP) Cast (TVC) (TC) 40 70…

A: Meaning of Cost: The term cost refers to the situation under which a firm occurs various expenses…

Q: What is a weakness of using LCOE as a benchmark for comparing generation methods? a. It does not…

A: Present value is the idea that expresses an amount of cash today is worth more than that equivalent…

Q: PLS SHOW THE CASH FLOW OF THE PROBLEM NOT THE CASH FLOW OF THE ANSWER.

A: In the cash flow diagram the downward arrows represent the payments while the upward arrows…

Q: Use the values in the table below to answer the following questions. Q TC ATC 1 35.91 9 101.1 10…

A: Total cost (TC) is the cost of producing all the units of output.Total cost is the sum of fixed cost…

Q: Why Fundamentals of Engineering Economics?

A: Fundamentals of Engineering economics highlights how important economics is in engineering and how…

Q: Using the simple monetary rule Rt-r=m(Tt-T), if m=0.5 and the inflatio rate is 2 percent below the…

A: The Taylor rule would result in the relation between the interest rate and the inflation rate which…

Q: TC ATC MC 1 29.89 29.89 6 (A)- 62.63 -(B)- -( C)- 7 146.2 19 5988 315.2 20 -( E)- -( D)- 876 Cell…

A: Marginal cost is the additional cost incurred when an additional unit of output is sold.

Q: typing clear no chatgpt used i will give 5 upvotes i need both answers

Concept explainers

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

Question

Solve b part only

6. Suppose Vanuatu and Oman are countries that both produce coconuts and corn which are sold for the same price. Below are various combinations the countries can produce
using the same amount of capital and labour.
Vanuatu
Coconut
(Million bags)
Production and consumption before trade (A) 50
Consumption available after trade (B)
200
Oman
Coconut
Corn
Corn
(Million bags) (Million bags) (Million bags)
100
850
d.
100
110
110
1,000
Table 1. A Table showing production in Vanuatu and Oman
a. Using the information above, draw a PPF (Production Possibilities Frontiers) curve for Oman showing the production and consumption without trade and the
production and consumption with trade (points A and B).
b. Explain the term comparative advantage. Based on the information above, calculate which country has a comparative advantage in coconut production and explain
why you think the country has a comparative advantage in coconut production.
c. Explain what you understand by the term absolute advantage. Based on the theory of absolute advantage, which country do you think should specialize in Corn
production and why do you think so?
Firms and Countries are encouraged by economists to specialize. What is the importance of specialization in macroeconomics?
e. Although Oman produces a lot of Corn, there is a shortage of corn products in the country due to excess exports. Explain 2 policies that the Oman government can
put in place to address this issue.
f. Recently, the governments of Vanuatu and Oman decided to improve trade between the two countries. Explain 2 ways they can do this.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Explaining Comparative Advantage

VIEW

Step 2: Determining comparitive advantage

VIEW

Solution

VIEW

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Please solve on a piece of paper
Calculate and complete columns (3), (4), (5), (6) and (7) as instructed by quiz question # 8. (1) (2) (3) (4) (5) (6) (7) Quantity of Total Labor Product 10 50 11 54 12 60 13 64 14 66 15 67 Use this area for calculations if needed and to answer Q10
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
If the details of the quantity to be produced for a period are as follows, how many units are produced? The opening inventory is 160 units; units sold are estimated to be 200 units; the desired closing stock is 100 units. a. 200 units b. 260 units c. 460 units d. 140 units
Write the formula of Annual Effective Yields?
Method of full coating is taking into account a. Only direct costs and respective contribution margin b. All costs including fixed and variable costs c. Only direct costs and respective gross margin d. Total sum of fixed costs,but only a paid amount of variable cos
BVM manufactured and sold 25,000 small statues this past year. At that volume, the firm was exactly in a breakeven situation in terms of profitability. BVM’s unit costs are expected to increase by 30% next year. What additional information is needed to determine how much the production volume/sales would have to increase next year to just break even in terms of profitability? (a) Costs per unit (b) Sales price per unit and costs per unit (c) Total fixed costs, sales price per unit, and costs per unit (d) No data is needed, the volume increase is 25, 000 + 25, 000(0.30) = 32, 500 units.
1
whats the range of profitability
I will split this question into two parts per the Q&A guidlines and leave a like for your assistance, thank you.Background:New Pumper system equipment is under consideration by a gulf coast chemical processing plant. One crucial pump moves highly corrosive liquids from specially lined tanks on intercoastal barges into storage and preliminary refining facilities dockside. Beacuse of the variable quality of the raw chemical and the igh pressures imposed on the pump chassis and impellers, a close log is maintained on the number of hours per year that the pump operates safety records and pump componenet deterioration are considered critical control points for this system. As currently planned, rebuild and M&O cost estimates are increased accordingly when cummulative operating time reaches the 6000-hour mark. Information:- First cost: $800,000- Rebuild Cost: $150,000 whenever 6000 cumulative hours are logged. Each rework will cost 20% more than the previous one. A maximum of three…
The owner shop is contemlating adding anew product which will require additional mouthly payment of 6000, variable costs would be brirr. 2 per new product & its selling price is brirr. 7 each What would be the profit(loss) be if 1000 unit were sold in month?
y) Consider the Prodluction function Below. For each state amd Poove whe ther it is Constamt/incieasing fdecreasing returns to Scale. (a) F(K,L). k" L'n (b) F(K,L) = min (uk , 2L) +30 (C) F(K,L) = 4k + 3L (c) F(K.L)-