Suppose that Spain and Germany both produce rye and shoes. Spain's opportunity cost of producing a pair of shoes is 5 bushels of rye while Germany's opportunity cost of producing a pair of shoes is 10 bushels of rye. By comparing the opportunity cost of producing shoes in the two countries, you can tell thatSpain has a comparative advantage in the production of shoes andGermany has a comparative advantage in the production of rye. Suppose that Spain and Germany consider trading shoes and rye with each other. Spain can gain from specialization and trade as long as it receives more than5 bushels of rye for each pair of shoes it exports to Germany. Similarly, Germany can gain from trade as long as it receives more than1/10 pair of shoes for each bushel of rye it exports to Spain. Based on your answer to the last question, which of the following prices of trade (that is, price of shoes in terms of rye) would allow both Germany and Spain to gain from trade?a. 9 bushels of rye per pair of shoes b. 3 bushels of rye per pair of shoes c. 1 bushel of rye per pair of shoes d. 8 bushels of rye per pair of shoes

After discussing the options, the strategic management team has agreed that the pod coffee idea works well with the company's mission statement and decides that the company should move forward in exploring the pod coffee idea. in order to make sure that the pod coffee idea is a good one, and to see if there are other potential future endeavors to pursue, you must analyze the market situation and formulate a strategy. your boss asks you to start working on the pod coffee idea. what is your first stepa. your first step is to formulate a strategy for how to market the pod coffee concept. b. your first step is to consult with your boss and find out what he thinks about the pod coffee idea. c. your first step is to do some research to find out what your competitors are doing. d. your first step is to analyze the organization's strengths, weaknesses, opportunities, and threats.

Alandlord rented an art studio to an artist. under the terms of the signed, written, two-year lease, the artist agreed to pay the landlord $1,000 per month and to assume responsibility for all necessary repairs. after the first year of the lease, the artist assigned the balance of his lease to a sculptor. the landlord approved the sculptor as a tenant and accepted two rent payments from her, and then the landlord sold the building to an investor. the sculptor had made two payments to the investor when an electrical fire broke out in the studio, injuring the sculptor. the fire was caused by faulty wiring. the landlord was aware that there was a dangerous wiring problem when he leased the property to the artist. but when the landlord discovered how costly repairs would be, he decided it would be more profitable to sell the property than to repair it. the problem was not easily discoverable by anyone other than an expert electrician, and the landlord did not tell the artist, the sculptor, or the investor about the problem. the sculptor sues to recover damages for her injuries. from whom can the sculptor recover?

Which of the following has the largest impact on opportunity cost