The reason of absolute advantage for U.S in both goods and the country that enjoys a comparative advantage in food. Concept Introduction Absolute advantage : It is the advantage of a country to produce a good or service at a per unit cost that is lower than that of another country that produces the same good or service. Comparative advantage : It is the ability of a country to produce goods and services at an opportunity cost that is lower as compared to other countries.

Question

Explain and evaluate the impact of legislation on the U.S. criminal justice system, specifically on the prison population and its impact on poverty and the U.S. economy. Include significant elements and limitations such as the War on Drugs and the First Step Act.

Answer 1

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 19, Problem 2P

To determine

The reason of absolute advantage for U.S in both goods and the country that enjoys a comparative advantage in food.

Concept Introduction

Absolute advantage: It is the advantage of a country to produce a good or service at a per unit cost that is lower than that of another country that produces the same good or service.

Comparative advantage: It is the ability of a country to produce goods and services at an opportunity cost that is lower as compared to other countries.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Students have asked these similar questions

Explain and evaluate the impact of legislation on the U.S. criminal justice system, specifically on the prison population and its impact on poverty and the U.S. economy. Include significant elements and limitations such as the War on Drugs and the First Step Act.

Given the following petroleum tax details, calculate the marginal tax rate and explain its significance: Total Revenue: $500 million Cost of Operations: $200 million Tax Rate: 40% Additional Royalty: 5% Profit-Based Tax: 10%

Use a game tree to illustrate why an aircraft manufacturer may price below the current marginal cost in the short run if it has a steep learning curve. (Hint: Show that learning by doing lowers its cost in the second period.) Part 2 Assume for simplicity the game tree is illustrated in the figure to the right. Pricing below marginal cost reduces profits but gives the incumbent a cost advantage over potential rivals. What is the subgame perfect Nash equilibrium?

Answer 2

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 19, Problem 2P

To determine

The reason of absolute advantage for U.S in both goods and the country that enjoys a comparative advantage in food.

Concept Introduction

Absolute advantage: It is the advantage of a country to produce a good or service at a per unit cost that is lower than that of another country that produces the same good or service.

Comparative advantage: It is the ability of a country to produce goods and services at an opportunity cost that is lower as compared to other countries.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 3

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 19, Problem 2P

To determine

The reason of absolute advantage for U.S in both goods and the country that enjoys a comparative advantage in food.

Concept Introduction

Absolute advantage: It is the advantage of a country to produce a good or service at a per unit cost that is lower than that of another country that produces the same good or service.

Comparative advantage: It is the ability of a country to produce goods and services at an opportunity cost that is lower as compared to other countries.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Answer 4

Question

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

Chapter 19, Problem 2P

To determine