Maldonia has a comparative advantage in the production of while Lamponia has a comparative advantage in the . Suppose that Maldonia and Lamponia specialize in the production of the goods in which each has a potatoes production of tea comparative advantage. After specialization, the two countries can produce a total of 24 million pounds of potatoes and 12 millioi pounds of tea. Suppose that Maldonia and Lamponia agree to trade. Each country focuses its resources on producing only the good in which it has a comparative advantage. The countries decide to exchange 8 million pounds of potatoes for 8 million pounds of tea. This ratio of goods is known as the price of trade between Maldonia and Lamponia.

Q: Answer the following questions based on the information provided. a. The on-demand video industry is…

A: a. From the above graph, we can say that the top three firms have 93% market power of an on-demand…

Q: Drag each tile to the correct location on the chart. Identify which countrles and which features are…

A: Unitary State Federal State France and People Republic of China Mexico and India Central…

Q: 1 40 95 2 75 4 150 135 170 Complete the table above . Applying the rule of profit maximization, if…

A: *Answer:

Q: Need help fast

A: Students analysis is correct,because with increase in SRAS,price level decreases.

Q: You are the manager of a popular hat company. You know that the advertising elasticity of demand for…

A: Price elasticity of demand refers to the responsiveness of the quantity demand due to change in the…

Q: the shórt-run and Démand gràphs fór á perfectly competitive market experiencing a profit. In each…

A: In perfect competition, eqm. quantity is found by the point where MC(marginal cost) and P(price)…

Q: Answer the question based on the following information for a public good. Pa and Ppare the prices…

A: Public good: - goods that are both non-excludable and non-rival in nature are known as public goods.…

Q: A good with many close substitutes is likely to have relatively demand, since consumers can easily…

A: The elasticity is the degree of responsiveness from the part of the consumer towards the changes in…

Q: Suppose Faith and Mickey are playing both dictator and ultimatum games. Faith is the…

A: Meaning of Game Theory: The term decision theory or game theory refers to the situation under…

Q: QUESTION 3 The 1928 Pact of Paris (the Kellogg-Briand Pact) a. unequivocally banned all wars,…

A: 3. The accord was multilateral.

Q: Isabella grows pumpkins. Her average variable cost (AVC), average total cost (ATC), and marginal…

A: Perfect competition is a market form with a high number of buyers and a high number of sellers.…

Q: 1. (0.2 pt) Which two categories of goods are excludable? and

A: * ANSWER :-    1)

Q: Calculate the Real GDP for the table found helow: Nominal/ Current GDP in billions Year CPI or GDP…

A: Real GDP: It measures the market value of final goods and services at base year price during a given…

Q: Before taking a student loan, the student should know that, in most cases, the money borrowed must…

A: before taking a student loan,the student should know that in most cases the money borrowed must be…

Q: The mayor of Small| Town thinks that the current market wage of $10 per hour is too low and is…

A: The above given situation is the one where there the government has imposed some sort of policy…

Q: Consumer and Producer surplus Stax $100 $70 $50 $45 $X $5 D 40 60 Q Assume an excise tax that has…

A:

Q: ATC AVC d MR MC 100 85 70 60 50 35 20 3 6 9 12 20 21 Figure 9.1 Refer to Figure 9.1. For this…

A: The profit maximization condition is when marginal revenue is equal to marginal cost (MR=MC).  From…

Q: 11. Use the following web-site to convert the price of gasoline to inflated prices for the current…

A: Since you have posted multiple questions, we will provide the solution only to the first question as…

Q: 1. An economic slow-down (Interest on Reserves) a. What should the Fed do? b. Why would that work?…

A: Monetary policy is the policy of central bank where the bank applies certain instruments like…

Q: Which budget expense and financial activity are correctly matched? O Fixed expense: $800 monthly…

A: A Cost is defined as an expenditure which is required to produce or sell a good. There are different…

Q: Paying for sneakers using a credit card is an example of a person borrowing

A: A credit card refers to a thin rectangular piece of plastic or metal card issued by financial…

Q: Consider a perfectly competitive market with 1000 firms. The cost function of each firm is C(q) =…

A: Given: Cost function:C(q)=0.025q2+200 Demand: QD=60,000-10,000P

Q: Which of the following was NOT something that is needed in order to be able to price discriminate?…

A: Price discrimination refers to the policy of a firm to charge different prices for the same product…

Q: New Normal Unlversity has found It necessary to Institute a crime-control program on Its campus to…

A: Marginal Benefit : The marginal benefit can be defined as the additional benefit which a consumer…

Q: 1. Mr. Wellington buys a new 66" television so he can watch LeBron James play some basketball. The…

A: Answer - Given in the question - Cost of television = $760  As cost of television is one time cost…

Q: Consider two states that adopt different laws concerning labor unions. The following graph shows the…

A: There would be an excess supply of labor in the market at the wage rate of $12.5. At the wage rate…

Q: has an absolute advantage in the production of maize, and Loc's opportunity cost of producing 1…

A: The following graph depicts Loc's Production Possibilities Frontier (PPF). This curve depicts the…

Q: Personal Consumption Expenditures $400 Government Purchases 128 Gross Private Domestic Investment 88…

A: National income represents or manifests the amount of earnings earned by the residents of a nation…

Q: II Analytical 3. Assume the monetary base is $100 million, the currencydeposit ratio is 0.5, and the…

A: The total amount of money and other liquid assets in an economy on the measurement date is known as…

Q: A generic firm can make all the following changes in the long run except Select one: a. Leave an…

A: In the long run, the firm try to optimize the level of  production and earn economic profit.

Q: Real GDP Consumption Planned investment Planned aggregate Unplanned inventory (in billions) (in…

A: * SOLUTION :-  Given that,

Q: Assume that there are four consumers A, B, C, and D, and the prices that each of them is willing to…

A: "In economics, consumer surplus occurs when price paid by consumers for a commodity or service is…

Q: $2.00 $1.50 $1.00 27 28 30 Millions of Gallons of Milk Per Week 20 35 Refer to the above dilagram…

A: Equilibrium refers to the point where the demand curve and supply curve intersects. In the above…

Q: Consider the market for Blackberry cell phones. Assume the market is perfectly competitive and at a…

A: Given, Market for Blackberry cell phone. The market is perfectly competative and at market clearing…

Q: For the following alternatives, (a) find the maximum cost you can spend on alternative A to break…

A: A B Fixed Cost x 2300000. Annual Cost 774 486 Expected Life 10 20

Q: Alex, Kara, and Susie are the only three people in a community. Alex is willing to pay $40 for the…

A: Public goods: A public good is a commodity or services which are provided to all members of the…

Q: You're living and working in France and you believe that the Euro will depreciate relative to the US…

A: The forward exchange rate is the current rate of exchange for a foreign currency market transaction…

Q: thly survey carried out by the U.S. Bureau of the Census, asks a series of questions to divide up…

A: The U.S. unemployment rate which is based on a monthly survey carried out by the U.S. Bureau of the…

Q: Minimum Actual Price Acceptable (Equilibrium Price) $ 17 Producer Price A $ 6 B 7 17 17 D 11 17 E 13…

A: In economics, the total surplus is the total welfare of both consumers and producers. Consumer…

Q: when the price candy bars 19,000 per day to miapolnt formula) Kunuenb for candy bars is Multiple…

A: Demand is defined as the want and desire that a consumer has for any product or service. When a…

Q: A- Bulleted Invis Bullets Large_Spa... Name Date Paragraph St LIIC VISILUIS C CIILCI at the state…

A: I recently purchased shoes According to four types of utility. 1.Form utility Form of the shoes is…

Q: Which of the following factors is most important determining short-run foreign exchange rates ? O A.…

A: Exchange rates are the rates at which one currency is exchange with the other for the purpose of…

Q: Multiple Cholce prices of Cand D cannot be determined. price of C Is $5 and the price of D is $10…

A: Budget line: - it is the graphical representation of different combinations of two goods that a…

Q: Suppose that Italy and Switzerland both produce jeans and olives. Italy's opportunity cost of…

A: Comparative advantage is a theory about the ability of a nation to produce a good or service at a…

Q: Which of the following shifts the short-run, but not the long-run, aggregate supply right? a…

A: Note:- Since we can only answer one question at a time, we'll answer the first one. Please repost…

Q: 8- Refer to the graph below. Assume that TVs and VCRS are two complement goods and that the diagram…

A: Option (a).

Q: Suppose that Ciana is deciding whether or not to buy a pair of sneakers that she has been…

A: For Total Cost of Clana, we have to add opportunity cost to the price

Comparative Advantage and Absolute Advantage Analysis

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