Business, 22.08.2020 02:01 Heavenleigh302

Two nations, Mars and Venus, each produce food and clothing. The table gives points on each nationâs PPF. The asterisks indicate their current point of production. Which of the following statementsis correct based on the concept of comparative advantage? Mars Venus
Food Clothing Food Clothing
0 30 0 40
2 24 4 32
4 18 8 24
5 12 12 16
8 6 16 8
10 0 20 0

a. Mars and Venus should continue producing the quantities indicated by the asterisks.
b. Mars should specialize in the production of food.
c. Mars should specialize in the production of clothing.
d. Venus has the comparative advantage in clothing.
e. Mars has an absolute advantage in the production of food.

Answers: 3

Show answers

Answers

Answer from: solphiafischer

The correct option is;

c. Mars should specialize in the production of clothing

Explanation:

The given table can be presented as follows;

Mars Venus

Food Clothing Food Clothing

0 30 0 40

2 24 4 32

4 18 8 24

5 12 12 16

8 6 16 8

10 0 20 0

From the attached chart as produced in Excel, the trend lines and their equation for Mars and Venus can be seen

The relationship between Clothing, y and Food, x production for Mars is given as follows;

y = -3·x + 30

The relationship between Clothing, y and Food, x production for Venus is given as follows;

y = -2·x + 40

Therefore since a given decrease in food production results in a higher increase in Cloth production for Mars than for Venus, Mars should specialize in the production of clothing.

Two nations, Mars and Venus, each produce food and clothing. The table gives points on each nationâs

Answer from: Quest

E? pretty sure let me know the answer

Answer from: Quest

Idk maybe its a glitch in the system it happens

Another question on Business

Business, 22.06.2019 05:10

1. the political environment in india has proven to be critical to company performance for both pepsico and coca-cola india. what specific aspects of the political environment have played key roles? could these effects have been anticipated prior to market entry? if not, could developments in the political arena have been handled better by each company? 2. timing of entry into the indian market brought different results for pepsico and coca-cola india. what benefits or disadvantages accrued as a result of earlier or later market entry? 3. the indian market is enormous in terms of population and geography. how have the two companies responded to the sheer scale of operations in india in terms of product policies, promotional activities, pricing policies, and distribution arrangements? 4. “global localization” (glocalization) is a policy that both companies have implemented successfully. give examples for each company from the case.

Answers: 1

Answer

Business, 22.06.2019 11:00

When the federal reserve buys bonds from or sells bonds to member banks, it is called monetary policy reserve ratio interest rate adjustment open market operations

Answers: 1

Answer

Business, 22.06.2019 16:30

Suppose that electricity producers create a negative externality equal to $5 per unit. further suppose that the government imposes a $5 per-unit tax on the producers. what is the relationship between the after-tax equilibrium quantity and the socially optimal quantity of electricity to be produced?

Answers: 2

Answer

Business, 22.06.2019 20:20

Faldo corp sells on terms that allow customers 45 days to pay for merchandise. its sales last year were $325,000, and its year-end receivables were $60,000. if its dso is less than the 45-day credit period, then customers are paying on time. otherwise, they are paying late. by how much are customers paying early or late? base your answer on this equation: dso - credit period = days early or late, and use a 365-day year when calculating the dso. a positive answer indicates late payments, while a negative answer indicates early payments.a. 21.27b. 22.38c. 23.50d. 24.68e. 25.91b

Answers: 2

Answer

You know the right answer?

Two nations, Mars and Venus, each produce food and clothing. The table gives points on each nationâs...

Questions