In a month, caleb can produce a maximum of either 30 bushels of pears or 15 bushels of apples, or any linear combination in between. similarly, diane can produce a maximum of either 20 bushels of pears or 5 bushels of apples, or any linear combination in between. 1st attempt part 1 what is the opportunity cost for caleb to produce one more bushel of apples in terms of pears? one bushel of apples equals bushels of pears. what is the opportunitycost for diane to produce one more bushel of apples in terms of pears? one bushel of apples equals bushels of pears.

One bushel of apples equals 2 bushels of pears. (opportunity cost for Caleb)

One bushel of apples equals 4 bushels of pears. (opportunity cost for Diane)

Explanation:

In this example, opportunity cost is simply calculated by dividing the maximum capacity for pears with the maximum capacity for apples. In other words, it symbolizes the loss an individual gets by opting for one decision among two options. Caleb has two times smaller opportunity cost than Diane. Therefore, if they had to specialize in producing one good, Caleb should go for apples, while Diane should go for pears.

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: