Suppose that France and Germany both produce fish and olives. France's opportunity cost of producing a crate of olives is 4 pounds of fish while Germany's opportunity cost of producing a crate of olives is 10 pounds of fish. By comparing the opportunity cost of producing olives in the two countries, you can tell that __________ has a comparative advantage in the production of olives and _______ has a comparative advantage in the production of fish.

Answers

Answer 1
Answer:

Answer:

France

Germany

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries.

France has a lower opportunity cost in the production of olives compared to Germany.

It means that Germany would have a lower opportunity cost in the production of fish when compared to France.

I hope my answer helps you

Answer 2
Answer:

Final answer:

France has a comparative advantage in the production of olives because it gives up less fish to produce them than Germany does. Conversely, Germany has a comparative advantage in fish production as it sacrifices less to produce fish than olives.

Explanation:

Comparative advantage is an economic concept that identifies the goods a country can produce in a cost-effective way compared to other countries. In the scenario where France's opportunity cost for producing one crate of olives is 4 pounds of fish and Germany's opportunity cost for the same crate of olives is 10 pounds of fish, we can deduce that France has a comparative advantage in olive production and Germany has a comparative advantage in fish production since it gives up less to produce the same amount of fish as opposed to olives.

Learn more about Comparative Advantage here:

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If a painter who is contracted to paint the exterior of a house does NOT finish the job, he has violated his duty to ________.

Answers

If a painter who is contracted to paint the exterior of a house does NOT finish the job, he has violated his duty to perform.

Suppose a hypothetical economy is currently in a situation of deficient aggregate demand of $64 billion. Four economists agree that expansionary fiscal policy can increase total spending and move the economy out of recession, but they are debating which type of expansionary policy should be used. Economist A believes that the government spending multiplier is 8 and the tax multiplier is 4. Economist B believes that the government spending multiplier is 4 and the tax multiplier is 2. Economist B believes that the government spending multiplier is 4 and the tax multiplier is 8.Compute the amount the government would have to increase spending to close the output gap according to each economist's belief. Then, for each scenario, compute the size of the tax cut that would achieve this same effect.

Answers

Answer:

Check the explanation

Explanation:

Government needs to fill gap of $64 billions

for economist A

Tax multiplier is 2 so in order to fill a output gap of 64 billions, cut taxes by 64/ 2 = 32 billion

tax have to cut by $32 billions

govt spending multiplier is 8, so spendinh has to increase by 64/8=$8 billions.

for economist B

Tax multipler is 8 so to fill a output gap of 64 billions, cut taxes by 64/ 8= 8 billion

tax have to cut by $8 billions

govt spending multiplier is 4, so spending has to increase by 64/4=$16 billions.

⇒This means that Economist C likely believes that:

- Tax cuts induce investment spending and improve workers incentives.This is because cutting the taxes gives an incentive to the workers to work more.

⇒ A rise in government spending completely crowds out private sector spending, because increased govt spending increases the interest rate, hence private spending is crowded out.

Classify the following markets as perfectly competitive, monopolistic, or monopolistically competitive, and explain your answers.Wooden no. 2 pencilsCopper (hint: there are many sellers)Local public utilities (ex. water, electricity)Peanut butterLipstick

Answers

Answer:

a)no. 2 wooden pencils - perfectly competitive market

b) copper - perfectly competitive market

c) Local public utilities- monopoly market

d) Peanut butter - monopolistic competitive market

e) Lipstick - monopolistic market

All no 2 pencils are identical each other. There are many sellers of pencils. And there's usually a general price for the pencils. Also, there are little barriers to entry or exit of firms. So the market for the no 2 pencils are perfectly competitive firms.

Also, coppers are identical to each other. They can't be differentiated from each other. There is usually a standard price for copper. So the market for copper is perfectly competitive.

For local public utilities, there is usually one firm providing the service. Also, because of the high cost of setting up these services, there is a high barrier to the entry of firms into the industry. This is why local public utilities are a monopoly.

Peanut butter and lipsticks are perfectly monopolistic firms because:

A. There are many firms selling this product but the products are usually differentiated.

B. Also, firms sets the price for their products

Explanation:

A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.

In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.

A monopolistic competition is when there are many firms selling differentiated goods. The demand curve is downward sloping

A monopoly is when there is only one firm operating in the industry. There are high barriers to entry and exit of firms in the industry.

I hope my answer helps you

Use the following classification to determine which category each of the following goods falls into. Goods Private Good Club Good Common Resource Public Good Museums that require admission fees Public swimming pools with free admission during summer Metered parking at a municipal parking lot Flood control Public basketball courts

Answers

Answer:

swimming pool is public good. basketball court public good. museums with admission fee are club good, metered parking public good. flood control public good

Explanation:

Melissa owns the following portfolio of stocks. What is the return on her portfolio? Stock Amount Invested Return A $8.000 17.5% B $4,000 11.0% C $12,000 4.3% A. 8.0% B. 9.0% C. 9.8% D. 10.9%

Answers

Answer:

The option c is a right answer.

Explanation:

For calculating the return on her portfolio, the steps is to be followed which is shown below:

Step 1: First compute the weight-age of each portfolio.

Step 2: Multiply the weight-age amount to invested return.

Step 3: After multiply the amounts, the expected return comes.

Mathematically,

Step 1:  Weight-age is to be computed by

= Each Portfolio amount  ÷ total stock amount

where total stock amount = $8,000 + $4,000 +$12,000

                                           =$24,000

For A = $8,000 ÷ $24,000 = 0.3333

For B = $4000 ÷ $24,000 = 0.1666

For C = $12000 ÷ $24,000 = 0.50

Step 2:

Expected Return for A = Weight-age × invested return

                                      = 0.3333 × 17.5%

                                      = 5.83%

Expected Return for B  = Weight-age × invested return

                                      =  0.1666 × 11.0%

                                      = 1.83%

Expected Return for C = Weight-age × invested return

                                      = 0.50 × 4.30%

                                      = 2.15%

So, the total return on her portfolio is a sum of Expected Return for A + Expected Return for B +Expected Return for C

=  5.83% + 1.83% + 2.15%

= 9.81 %

Hence, the return on her portfolio is 9.81% .

Therefore, the option c is a right answer

A company finds that there is a linear relationship between the amount of money that it spends on advertising and the number of units it sells. If it spends no money on advertising, it sells units. For each additional spent, an additional units are sold. (a) If is the amount of money that the company spends on advertising, find a formula for , the number of units sold as a function of .

Answers

Answer:

y = 0.01x + 300

Explanation:

There are some missing information in the question that are shown below:

If it spends no money on advertising, it sells 300 units

For each $1,500 additional spent, an additional 15 units are sold.

Given that

Number of units sold in case of no money spending = 300 units

Additional money spent = $1,500

Additional units sold = 15 units

By considering the above information, the formula is presented below:

y = 0.01x + 300

where,

0.01X is come from

= (Number of units sold in case of no money spending + Additional units sold - Number of units sold in case of no money spending) ÷ (Additional money spent)

= (300 units + 15 units - 300 units) ÷ ($1,500)

= 0.01X