Business, 12.06.2020 04:57 aliciapinto13

Suppose that Greece and Sweden both produce beer and cheese. Greece's opportunity cost of producing a pound of cheese is 4 barrels of beer while Sweden's opportunity cost of producing a pound of cheese is 10 barrels of beer. By comparing the opportunity cost of producing cheese in the two countries, you can tell that has a comparative advantage in the production of cheese and has a comparative advantage in the production of beer. Suppose that Greece and Sweden consider trading cheese and beer with each other. Greece can gain from specialization and trade as long as it receives more than of beer for each pound of cheese it exports to Sweden. Similarly, Sweden can gain from trade as long as it receives more than of cheese for each barrel of beer it exports to Greece. Based on your answer to the last question, which of the following prices of trade (that is, price of cheese in terms of beer) would allow both Sweden and Greece to gain from trade? a. 1 barrel of oil per pound of cheese
b. 6 barrels of oil per pound of cheese
c. 18 barrels of oil per pound of cheese
d. 3 barrels of oil per pound of cheese

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 06:00

When an interest-bearing note comes due and is uncollectible, the journal entry includes debitingaccounts receivable and crediting notes receivable and interest revenue.accounts receivable and crediting interest revenue.notes receivable and crediting accounts receivable and interest revenue.notes receivable and crediting accounts receivable.

Answers: 3

Answer

Business, 22.06.2019 07:40

Myflvs -question 3 multiple choice worth 2 points)(10.04 hc)in panama city in january, high tide was at midnight. the water level at high tide was 9 feet and1 foot at low tide. assuming the next high tide is exactly 12 hours later and that the height of thewater can be modeled by a cosine curve, find an equation for water level in january for panamacity as a function of time (t).of(t) = 4 + 5of(t) = 5 cost + 4o 460) = 5 cos 1+ 4of(0) = 4 cos + 5

Answers: 1

Answer

Business, 22.06.2019 08:20

Which change is illustrated by the shift taking place on this graph? a decrease in supply an increase in supply o an increase in demand o a decrease in demand

Answers: 3

Answer

Business, 22.06.2019 10:50

You are evaluating two different silicon wafer milling machines. the techron i costs $285,000, has a three-year life, and has pretax operating costs of $78,000 per year. the techron ii costs $495,000, has a five-year life, and has pretax operating costs of $45,000 per year. for both milling machines, use straight-line depreciation to zero over the project’s life and assume a salvage value of $55,000. if your tax rate is 24 percent and your discount rate is 11 percent, compute the eac for both machines.

Answers: 3

Answer

You know the right answer?

Suppose that Greece and Sweden both produce beer and cheese. Greece's opportunity cost of producing...

Questions