Q: If the price in a competitive market is "lower than equilibrium" then a. quantity demanded exceeds…
A: Competitive market refers to a market in which there are a huge number if buyers and sellers which…
Q: What is the viewpoint of Ricardo regarding the Comparative Difference in Costs?
A: Answer: According to David Ricardo, comparative cost discrepancies, rather than absolute cost…
Q: A producer has a comparative advantage in a good if it is the lowest opportunity cost producer of…
A: It can be defined as a situation in which a particular individual or a producer is able to produce a…
Q: Is complete specialization more or less likely if production possibility frontiers exhibit…
A: Production Possibility curve: It refers to the curve that shows the various production levels for an…
Q: “In 2019, I started my small business by selling prints of my photographs. Now it’s temporarily…
A: Opportunity cost refers to the next best alternative that is foregone to select the best…
Q: If the state of Texas has a lower opportunity cost for producing beef compared to Alaska, then...
A: Opportunity cost refers to the potential benefit that the consumer misses out on when he chooses a…
Q: contract curve, do all the points equally represent desirable conditions to a just society? Explain
A: A contract curve shows the allocation of two resources/goods between two people. The curve shows all…
Q: The principal concept behind comparative advantage is that a nation should maximize its volume of…
A: When a country sells its goods and services to other countries, then these goods and services are…
Q: The theory of comparative advantage is credited to Group of answer choices Adam Smith. John…
A: The concept of "comparative advantage" basically refers to a country's capacity to manufacture a…
Q: Describe a constant production possibility frontier cost graph.
A: The objective of this question is to describe a constant production possibility frontier (PPF) cost…
Q: Which of the assumptions of comparative advantage seem unrealistic? Fixed technology and imperfect…
A: Trade is defined as the exchange of commodities and services across the boundary of the country.
Q: Colin gives away 2 marbles each time he makes a pokemon card construct a graph that represents…
A: The opportunity cost (OC) shows the value of the next best alternative which is forgone to consume…
Q: The opportunity cost of moving from point H to point G in the above picture is (specify amount and…
A: Opportunity cost refers to the benefit that is gone for other best alternative. Opportunity cost is…
Q: Use the following table to answer the question below:
A: Diseconomies of scale:- In the competitive market, a firm operates at a level where the price is…
Q: How is the theory of absolute advantage similar to that of comparative advantage? How is it…
A: The theories of comparative and absolute advantage are studied under international economics. The…
Q: For a producer to have a comparative advantage in a good is it necessary to be the most efficient…
A: Comparative Advantage: In the trade theory the country which has comparative a advantage in…
Q: Explain the importance of opportunity costs to decision-making and how opportunity costs lead to…
A: Opportunity cost is the next best alternative foregone. For decision making,it is useful because…
Q: When countries specialize based on their comparative advantage and trade with each other, how does…
A: Gains of trade happens when countries trade with one another and trade on goods which they…
Q: Detailed takeaways from the article " Vertical Integration is Dead, or is it? " by Osegowitsch,…
A: Industrial economics is the study and appraisal of business financial issues utilizing abstract…
Q: What is the relationship between production costs and comparative advantage? Group of answer…
A: The involvement in more open international trade is always beneficial for an economy because it…
Q: According to the economic theory known as mercantilism
A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…
Q: See the table here below: Labor Input: Tables and Chairs Production Country X Country Y Chair 2…
A: Answer: Opportunity cost: opportunity cost refers to the production of one good sacrificed to…
Q: What is sweetens opportunity cost of manufacturing 1 million cars per year?
A: Sweetens is a person who makes sweets. This implies the quality and skills of sweetens is to make…
Q: Write a clearly positive economic statement referring to comparative advantage. Explain why is it a…
A: Positive economic statements are the ones which do not necessarily have to be true but they can be…
Q: if Colin always gives up producing 2 fidget spinners every time he produces a Pokemon card what is…
A: Opportunity cost refers to the cost of the next-best alternative foregone while making a decision.…
Q: Is absolute advantage or comparative advantage more important for trade? Give an Example
A: International trade or trade refers to the exchange of capital, goods, and services outside the…
Q: The following graph shows a fictional world economy that consists of only two countries, Greenberg…
A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Discuss why combinations of two goods cannot be attained above the PPC.
A: PPC is defined as the locus points of output that can be produced with two goods given the factors…
Q: Opportunity cost is an important factor in looking at comparative advantage. True False
A: Answer: Comparative advantage: a country has a comparative advantage in the production of a good…
Q: Comparative Advantage:
A: Comparative benefit is an monetary principle that describes the ability of a country, character, or…
Q: Is this a good example of opportunity cost? Why or why not. “In 2019, I started my small business by…
A: “In 2019, I started my small business by selling prints of my photographs. Now it’s temporarily…
Q: Explain the difference between absolute advantage and comparative advantage. Which is more important…
A: Opportunity cost is the decrease in number of units of one good to produce more of other good.
Q: The following hypothetical production possibilities tables are for China and the United States.…
A: Comparative cost advantage means that if countries specialize in production of a good which has a…
Q: What does the contract curve in an Edgeworth production box signify? Why do competitive markets…
A: The Edgeworth box takes into account a two-person, two-good "exchange economy." An Edgeworth box,…
Q: What concept describes the situation where the increase in the production of one good leads to a…
A: The issue is recognizing the financial idea that makes sense of the compromise included while…
Q: Define Static analysis, comparative analysis, and dynamic analysis, also State the main difference…
A: Data is factual information that is collected for the population. The data is organised in a way…
Q: Why is the production possibility curve also called as the opportunity cost curve
A: Initially we can say that the production possibility curve is known as a curve or line which depicts…
Q: Explain the theory of comparative advantage using an example, and describe five (5) assumptions.
A: comparative advantage alludes to the capacity of a country to create specific labor and products at…
Q: Many trading partners trade the same goods and services with one another. The U.S. exports…
A: Trade is essentially an exchange between two parties who are in need of each other's resources, such…
Q: The countries of Nickeltown and Lykesville each produce two goods: Ovens and Dishwashers. The table…
A: Comparative Advantage: A country have comparative advantage in producing a good implies that the…
Q: VARIABLE COSTS OF PRODUCTION UNDER THEORY OF COMPARATIVE COSTS, COMMENT ON THE GRAHAM'S VIEW?
A: Answer: Graham refutes the generally held belief that specialisation will increase trade countries'…
Q: law of comparative advantage
A: Comparative advantage, as the name indicates, the producer would have an edge or profit in producing…
Q: Does intra-industry trade contradict the theory of comparative advantage?
A: Intra-industry trade refers to exchanging goods and services within the different branches and the…
Q: Why is the theory of absolute advantage incapable of explaining trade in the real world? Explain.
A: Absolute advantage occurs when an individual or a country can produce a greater quantity of a good…
Q: If two parties trade based on comparative advantage and both gain, in what range must the price of…
A: The ability of an economy to produce a specific good or service at a lower opportunity cost than its…
Q: 1 ook The table below shows the maximum output levels for Here and there. Here There 1 cloth = Cloth…
A: As per new guidelines of Bartleby, I can just do three subparts of the question. For the fourth…
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- 3) What is the opportunity cost of taking this Intro to Microeconomics course at NYU?What is the opportunity cost of attending class? Remember to consider explicit and implicit costs.My sister graduated high school, she decided to go to university. The opportunity cost of going to university is the wages she gave up working full time for the number of years she was in university. Could you please explain in economic terms why opportunity cost exists in this specific situation?What is the per-unit opportunity cost of product Y as production moves from point D to point A?
- Suggest assumptions of the Production Possibility FrontierUse the data in the following graph to illustrate the law of increasing costs numerically. (Hint: Start at point E and move toward point A.) A 180 C D 150 120 90 60 30 30 60 90 120 150 180 Units of digital cameras Moving from point E toward point A, we give up (Click to select) v players. amounts of digital cameras for each gain of (Click to select) V DVD The opportunity cost of moving from: E to D is (Click to select) v digital cameras; D to C, (Click to select) V digital cameras; C to B, (Click to select) V digital cameras; and B to A, (Click to select) digital cameras. Units of DVD playersImagine that Beth is the best florist in the world and the best pianist in the world. But can earn more as a florist than a pianist. Using this example explain the difference between comparative and absolute advantage and tell us what profession Beth should pick.
- Is this a good example of an opportunity cost? “To begin, I began selling prints of my pictures in 2019 throughout 2020. It's now closed. USPS and UPS were the options I had during this period to ship out orders. At the moment I didn’t have enough knowledge about USPS, so I chose to ship my prints via UPS rather than USPS. My orders weren’t delivered on time and upon arrival, the prints were damaged, and I spent a large amount of money shipping these orders out. The opportunity cost is the cost of USPS shipping.”I only need help in the 3 last questions Q1. The following table shows the output of rice and machinery one labor hour can produce in Mexico and Thailand: Rice Machinery Thailand 6 2 Mexico 2 1 What are the marginal products of labor in rice and machinery production in Thailand? What about Mexico? Which country has an absolute advantage in rice and which country has an absolute advantage in machinery? What is the autarkic price ratio of machinery relative to rice in each country? Which country has a comparative advantage in rice and which country has a comparative advantage in machinery? Suppose Mexico has 1,000 labor hours available. Construct the production-possibility frontier (PPF) and identify the optimal autarky equilibrium (using an indifference curve) for Mexico. Suppose the international price is set at 1 machinery:2.5 rice and Mexico decides to completely specialize in producing the product in which it has a comparative advantage. How would…Suppose you have a team of two workers: one is a baker and one is a chef. Your baker is talented but is inexperienced. Your chef is not only an elite chef but is also faster at baking. If your kitchen specialized according to absolute advantage, who would do the cooking? Who would do the baking? If your kitchen specialized according to comparative advantage, who would do the cooking? Who would do the baking? Which approach above is more efficient? Explain your answer.
- Table 19.15 shows how the average costs of production for semiconductors (the "chips" in computer memories) change as the quantity of semiconductors built at that factory increases. a. Based on these data, sketch a curve with quantity produced on the horizontal axis and average cost of production on the vertical axis. How does the curve illustrate economies of scale? b. If the equilibrium quantity of semiconductors demanded is 90,000, can this economy take full advantage of economies of scale? What about if quantity demanded is 70,000 semiconductors? 50,000 semiconductors? 30,000 semiconductors? c. Explain how international trade could make it possible for even a small economy to take full advantage of economies of scale, while also benefiting from competition and the variety offered by several producers. Quantity of Semiconductors 10,000 20,000 30,000 40,000 100,000 Table 19.15 Average Total Cost $8 each $5 each $3 each $2 each $2 eachWhy is comparative advantage more important than absolute advantage in determining whether trade is beneficial?A producer has a comparative advantage in a good if it is the most efficient producer of this good. True False