Jorge and Allison produce sandwiches and salads. See their production schedules below. Production Possibilities Schedules
Sandwiches Salads Sandwiches Salads
8 0 3 0
3 2 2 2
0 4 0 6

Required:
a. If Jorge produces all sandwiches and Allison produces all salads, what is total production?
b. Suppose the terms of trade are 3 salads for 4 sandwiches. If Jorge trades 4 sandwiches for 3 salads, how many sandwiches and salads will he be able to consume?
c. If Allison trades 3 salads for 4 sandwiches, how many sandwiches and salads will she be able to consume?
d. Compared to the situation where each individual did not specialize, what are the gains from trade?

Suppose that xtel currently is selling at $40 per share. you buy 500 shares using $15,000 of your own money, borrowing the remainder of the purchase price from your broker. the rate on the margin loan is 8%. a. what is the percentage increase in the net worth of your brokerage account if the price of xtel immediately changes to (a) $44; (b) $40; (c) $36? (leave no cells blank - be certain to enter "0" wherever required. negative values should be indicated by a minus sign. round your answers to 2 decimal places.) b. if the maintenance margin is 25%, how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.) c. how would your answer to requirement 2 would change if you had financed the initial purchase with only $10,000 of your own money? (round your answer to 2 decimal places.) d. what is the rate of return on your margined position (assuming again that you invest $15,000 of your own money) if xtel is selling after one year at (a) $44; (b) $40; (c) $36? (negative values should be indicated by a minus sign. round your answers to 2 decimal places.) e. continue to assume that a year has passed. how low can xtel’s price fall before you get a margin call? (round your answer to 2 decimal places.)