Business, 10.02.2020 21:27 Badbpyz7987

Suppose that you are on a desert island and possess exactly 20 coconuts. Your neighbor, Friday, is a fisherman, and he is willing to trade 2 fish for every 1 coconut that you arewilling to give him. Another neighbor, Kwame, is also a fisherman, and he is willing totrade 3 fish for every 1 coconut.

A. On a single figure, draw budget lines for trading with Friday and for trading withKwame. (Put coconuts on the vertical axis.)
B. What is slope of the budget line from trading with Friday?
C. What is slope of the budget line from trading with Kwame?
D. Witch budget line features a larger set of attainable combinations of coconuts andfish?

Answers: 2

Show answers

Answers

Answer from: imaniii88

A. See the figure attachedB. 1/2C. 1/3D. Both budget lines have the same number of combinations of coconuts and fish.

Explanation:

A. See the figure attached

To draw the buget line for trading with Friday you can enter some points.

Note that for every coconut you give, Friday will give you 2 fish. Hence:

number of fish = 2 × number of coconutsnumber of coconuts = number of fish / 2

Fish (horizontal axis) Coconuts (vertical axis)

0 0

2 1

4 2

6 3

40 20

The range is from 0 coconuts to 20 coconuts, which limits the number of fish to the even umbers bwetween 0 and 40.

B. See the figure attached

For every coconut you give, Kwame will give you 3 fish. Hence:

number of fish = 3 × number of coconutsnumber of coconuts = number of fish / 3

Fish (horizontal axis) Coconuts (vertical axis)

0 0

3 1

6 2

9 3

60 20

The range is also from 0 coconuts to 20 coconuts, but now the number of fish is limited to mulitples of 3 between 0 and 60.

B. What is slope of the budget line from trading with Friday?

The slope is the trading rate:

slope = rise / run = Δy / Δx = 1 coconut / 2 fish

It means that you will give 1 coconut per each 2 fish you receive from Friday.

C. What is slope of the budget line from trading with Kwame?

Again, the slope is the trading rate:

slope = rise / run = Δy / Δx = 1 coconut / 3 fish

It means that you will give 1 coconut per 3 fish that you receive from Kwame.

D. Witch budget line features a larger set of attainable combinations of coconuts and fish?

Both buget lines have the same number of combinations of coconuts and fish.

For Friday:

(0,0), (2,1), (4,2), (6, 3), ..... (40, 20), which are 21 combinations if you include (0,0).

For Kwame:

(0,0), (3,1), (6, 2), (9, 3), . . . (60, 20), which also are 21 combinations.
Suppose that you are on a desert island and possess exactly 20 coconuts. Your neighbor,Friday, is a

Answer from: Quest

The measure of an economic adopted

Answer from: Quest

answer; rapid growth in buyer demand and high buyer switching cost;

Another question on Business

Business, 22.06.2019 17:40

To appeal to a new target market, the maker of hill's coffee has changed the product's package design, reformulated the coffee, begun advertising price discounts in women's magazines, and started distributing the product through gourmet coffee shops. what has been changed? a. the product's perceptual value. b.the product's 4ps. c. the method used in its target marketing. d. the ownership of the product line. e. the product's utility.

Answers: 3

Answer

Business, 22.06.2019 19:40

Moody corporation uses a job-order costing system with a plantwide predetermined overhead rate based on machine-hours. at the beginning of the year, the company made the following estimates: machine-hours required to support estimated production 100,000 fixed manufacturing overhead cost $ 650,000 variable manufacturing overhead cost per machine-hour $ 3.00 required: 1. compute the plantwide predetermined overhead rate. 2. during the year, job 400 was started and completed. the following information was available with respect to this job: direct materials $ 450 direct labor cost $ 210 machine-hours used 40

Answers: 3

Answer

Business, 23.06.2019 01:00

Weekly sales at nancy's restaurant total $ 84,000. labor required is 420 hours at a cost of $21,000. raw materials used amount to $40,000. what is the partial measure of productivity for labor hours?

Answers: 1

Answer

Business, 23.06.2019 07:50

Acountry has reached a level of economic development where the manufacturing of both semidurable and nondurable consumer goods has just begun. also, the goods demanded relate to equipment and supplies to support manufacturing. in which stage of rostow’s five-stage model of economic growth does the country fit?

Answers: 1

Answer

You know the right answer?

Suppose that you are on a desert island and possess exactly 20 coconuts. Your neighbor, Friday, is a...

Questions