A country has an absolute advantage in the production of a good if it can _____ of the good than another country.

Q: The graph below shows the AD-AS diagram for Spain. All numbers are in billions. 1. What is the size…

A: The government regularly interferes in the market to prevent any malpractices like decrease in…

Q: Project 1 involves an outlay of $2.5m and gets an annual net income of $1m for 5 years. Project 2…

A: Payback period shows the time taken to cover the initial investment on any project.  The payback…

Q: Based on the graph above, how much abatement should be undertaken? Write the value and make sure to…

A: Marginal abatement costs are the cost of removing each unit of pollution, marginal damages are the…

Q: The stock price of Company XYZ can only have 5 possible stock price (PhP 10, PhP20, PhP30, PhP40 and…

A: Expected value in a probability experiment is the average of every result. The expected value of an…

Q: 3. Money held by the public that is measured as (A) M1 (B) M2 (C) MO (D) Fiat money (E) Commodity…

A: Money is a centralized, widely used, acknowledged form of trade that makes it easier to exchange…

Q: You are the owner of a local Honda dealership. Unlike other dealerships in the area, you take pride…

A: Given:- Price elasticity of demand=-1.8 Total firms=3 Marginal cost=$11000 To calculate:- Price=?…

Q: Suppose the market is perfectly competitive. The equilibrium market price P = $20. A consumer's…

A: Given information: The market is perfectly competitive The market equilibrium price (P) is $20…

Q: What is stagflation? How may it affect the Phillips Curve? What policy measures may be taken to…

A: Phillips curve shows a non linear and an inverse relationship between wage inflation and…

Q: Suppose that you have the following information about the market for employees in your buisness:…

A: The union negotiates a team size of only 5 employees, which means the union imposes a quantity quota…

Q: Nantgwynfaen Organic Farm (NOF) is a farm growing a range of fruit and vegetables. It has a farm…

A: Break-even analysis includes when the costs of the firms in consideration exactly equates the…

Q: 3. Suppose that a firm's profit function is π = 80q₁ - 2q1-9192-3q2 +100q2, where it must be that q₁…

A: Given information: π = 80q1 -2q12 - q1q2 - 3q22 + 100q2  ---------> Profit function.  q1 + q2 =…

Q: PRICE P So a a aa Pa Curve A Q, Q Q₂ Q1 Q₂ QUANTITY increase if the output is between Q3 and Q4.…

A: In monopoly market ,  The monopolist produces where MR = MC in order to maximize profits.  MR is the…

Q: Based on an explanation of the concepts; a) 'superior assets', b) 'produce surplus' c) victim costs…

A: Any person trades to earn some profits. The profits earned by a person provide the motive to…

Q: Problem 8 (Marginality Principle and Profit Maximization II). Correct the following statement. "If…

A: The profit is maximized where the MR = MC. The MR or Marginal revenue refers to the change in total…

Q: What is the marginal utility per dollar spent on the 6th strawberry? Which of the combinations of…

A: Utility shows the satisfaction.  MU is the marginal utility.  MU is calculated as the change in…

Q: Refer to Figure 2. In equilibrium, profits are equal to $0 a. b. C. d. $1300 $1200 $5000

A: A profit-maximizing firm produces at the intersection of MR and MC curves to maximize profit.  i.e.,…

Q: According to Rushkoff (2009), the philosophy of corporatism is:    A. To suppress lateral…

A: Corporatism was originally defined as a political ideology which segregates the society in to…

Q: Carefully write down the consumer's utility maximization proble and find Marshallian demand…

A: A consumer maximizes the utility subject to a budget constraint. The utility function is the…

Q: Demand for Corn Flakes is: P = 10 - Q. Supply of Kellogg's Corn Flakes is: P = 2 + Q. Now a generic…

A: Supply is generally means upward slope : as the price increases, suppliers are willing to produce…

Q: Define econometric in 200 words!

A: Econometrics refers to the use of statistical techniques to economic data in order to provide…

Q: Document E: Analyze how much we should worry about the national debt. (we should worry a little/we…

A: The term "national debt" is used to allude to a country's unpaid financial obligations.Depending on…

Q: 21. Josh, an entrepreneur, has disposed the following products: a. 2 boxes of canned goods @…

A: Since you have provided multiple questions, we will answer the first question. If you want any…

Q: 5 Five mutually exclusive investment alternatives have been proposed. Based on benefit-cost ratio…

A: If accepting one project stops you from accepting another, then those projects are said to be…

Q: An increase in the income tax rate (fiscal policy) will have no impact on the level of output or…

A: The proportion of household and business income that the government collects in taxes is known as…

Q: With a aid of the diagram, find the equilibrium price, quantity and equilibrium point. The price of…

A: If the price of Huawei phone is replaced with the Samsung phone, the people will switch to the…

Q: Suppose that a firm is producing in the short run with output given by: Q=86L-L² The firm hires…

A: Perfect competition is a unique form of the marketplace that permits numerous firms to sell a…

Q: 3. (2) Oliver gets an allowance of $50 this week and $56 next week. Let c, and c₂ be his consumption…

A:

Q: Economic analysis on a proposed project for widening a 20-mile urban freeway segment to accommodate…

A: B-C ratio (Benefit cost ratio) of a proposed project shows the relationship between the benefits…

Q: he market basket used to calculate the CPI in Aquilonia is 4 loaves of bread, 6 gallons of milk, 2…

A:

Q: A firm has some market power and so can choose to change its price. An analyst employed by the firm…

A: Market power is defined as a company's degree of influence over market price determination, either…

Q: According to the uncovered interest parity theory, bond yields on riskless euro- denominated bonds…

A: A currency is said to be appreciated when its  value rises in term of other currency. The…

Q: Using the following information, calculate the Net Value Added at Factor Cost. Sales…

A: Net value added method at factor cost explains the concept of gross income from the all the goods…

Q: From the following information:                                          Calculate Consumer Price…

A: The consumer price index could be measured through the following formula: CPIt=Cost of Market…

Q: S- Consider a buyer and seller of a used car. The quality of the car (denoted as s) is known to the…

A: Given,  A buyer and a seller of a used carThe quality of the car (s) is known to the seller but not…

Q: Assume a market demand curve Y(p)=3000-15p and a firm’s marginal cost is 60 (MC=60), Under perfect…

A: Given information: Y = 3000 - 15p  -------------> Market demand MC = 60 ------------> Firm's…

Q: 26.A man borrowed P20,000 and promised to pay an amount of P21,500 with simple interest of 20%. How…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: AN INVESTMENT OF P270,000.00 ON COMPUTER SHOP WILL HAVE THE FOLLOWING DATA: UNIFORM ANNUAL…

A: The yearly worth is the sum of all the advantages and expenses over the course of a year. The annual…

Q: Define the following Terms - Isoquant - Marginal rate of technical substitution - Production…

A: Since it makes an effort to employ scientific methods and applies them to the study of specific…

Q: Suppose that average labor productivity in Country B is $7,000, and that Countries B and E have the…

A: Given that; There are five countries A, B, C, D, and E The average labor productivity of country B…

Q: PRICE (Dollars per bike) 500 450 400 350 300 250 - 200 150 100 50 MC 0 0 50 I AC MR Demand 100 150…

A: Monopolistic competition occurs when a large number of small firms produce products that differ only…

Q: Two traffic signal systems are being considered for an intersection. One system costs $31,000 for…

A: Given, One System Cost   Initial Cost $31,000 Cost per Vehicle $0.23 Annual Maintenance…

Q: 2. Find the extremum of x² + x3 subject to x₁ + 4x2 = 2.

A: the extremum means a point where the function is maximum or minimum, therefore, we will maximize the…

Q: The industry in the figure below consists of many firms with identical cost structures, and the…

A: Demand: It refers to goods and services that are consumed by the people. More demand leads to an…

Q: Pam is rich and at this high income level, her demand for good X is independent of income and given…

A: CV, or compensating variation, is the adpating in income that returns the consumer to the original…

Q: An important consideration that entrepreneurs face in their decision making is their willingness to…

A: Enterpreneurship is one of the four factors of production. An enterpreneur applies his creative and…

Q: The figure below depicts the domestic market for a particular good. The curve labeled S represents…

A: Imports are the goods purchased by the home country from the foreign countries.  Exports are the…

Q: Suppose the economy is hit by a favorable aggregate demand shock. In response to this shock, the…

A: The increase in demand will be represented by a rightward shift in demand curve.  A decrease in…

Q: Consider the following principal agent problem with adverse selection. A firm faces a worker who may…

A: An agent may act in a way that is contrary to the best interests of the principal. Thus,…

Q: : Use an AD–AS graph to illustrate the initial equilibrium and the short-run equilibrium after the…

A:

Q: The Tax which would be most difficult to shift to others would be Select one: Personal income…

A: In case of taxes, there is no direct advantage in exchange for paying taxes; rather, they are paid…

Comparative Advantage and Absolute Advantage Analysis

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