Larry and Megan run a catering business in which they have two major tasks: getting new clients and preparing food for events and parties. It takes Larry 16 hours to prepare the food for an event and 4 hours of effort to get each new client, For Megan, it takes 10 hours to prepare food for an event and 5 hours to get a new client. In this scenario, Av has an absolute advantage in food preparation, and v has a comparative advantage in food preparation. Suppose that initially, Larry and Megan are splitting both tasks for a large number of events. Then they decide to start shifting some work according to the principle of comparative advantage. In particular, the person with the comparative advantage in food preparation will take over preparing food for one more event by taking the necessary time away from getting more clients, and the other person will use the freed-up time from not preparing food for one event to get more clients. As a result, the total number of events for which food is prepared will remain unchanged, but the number of new clients will increase by

Q: VC FC TC AVC AFC ATC MC 0.00 3,780.00 NA NA NA NA 1 400.00 2 700.00 3 900.00 4 1,000.00 1,050.00…

A: Disclaimer :- as you posted multipart questions we are supposed to solve the first 3 parts as per…

Q: Do you have any references or sources for this information

A: In an error correction model (ECM) expectations about future economic conditions can influence the…

Q: Can you please answer all the question A through H.

A: A price taker is an individual/ firm with zero commands over the costs of labor and products sold…

Q: what about question g

A: Equilibrium price is a fundamental concept in economics that refers to the price at which the…

Q: Explain what it means if the z-score of an exam score is -1.2.

A: z-score is a numerical value that tells the number of standard deviations a particular data value is…

Q: How was TVC calculated?

A: TVC is total variable cost in a cost structure of a model. Total variable cost is showing the…

Q: I heard that t = 66 months, is this true or false?

A: Current value of Car = 55000 Depreciation per month = 1% Steven's bank current balance  =…

Q: what kind of data is used in BI

A: BI Stands for Business Intelligence it refers to the applications, technologies & practices for…

Q: The EPA says the value of a human life is $9.4 million, measured from birth to death. If life…

A: According to the information given, the value of a human life is $9.4 million measured from birth to…

Q: Is there anything more I can add to make this answer worth 8 marks?

A: Investment increases the capital stock, and the amount of capital that is available to an economy is…

Q: where did you get 0.1235 from

A: We know that: X=-50000/P*Q By substituting values X=-50000/(P*(4.3103-1.39*ln P)) Since initial P is…

Q: Where did the 1/2 come from or what is it.

A: Producer surplus is the area below price and above supply curve.  Producer surplus is the area of…

Q: Where are you getting the number 11?

A: The gap between income and spending in an economy is the budget surplus. A budget surplus occurs…

Q: I need help with 4 and 5

A: Since you have asked to answer parts (4) and (5), we are answering only that for you. A government…

Q: is consumer spending likely to go up or down in the next 12 to 18 months

A: Consumer Spending: This refers to the total amount of money spent by individuals or households on…

Q: Are you able to assist me with the last two questions?

A: The Gini coefficient determines income distribution across a population. Created by the Italian…

Q: Please answer question number 8

A: The marginal revenue of a unit is the difference between the total revenue achieved at the current…

Q: What is the AW of the outside treatment

A: The annual worth is the net of all the profits and costs incurred over one year. Thus we present the…

Q: Please pass question on to someone with more knowledge. I do not like using up my questions for…

A: The procedure followed is correct only. This is how it is done. There is only a calculation mistake.…

Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.