What are the terms of trade

Assignment Help Business Economics

Reference no: EM13147888

Your roommate Pat decides to help with the party. The amounts of brownies and cake which can be produced in an hour (if all resources are devoted to that good) are shown by the following table: YOU PAT BROWNIES PER HOUR 60 28 CAKE PER HOUR 2 1 a. Who has an absolute advantage in producing brownies? Cake? b. For you, what is the opportunity cost of brownies? Of cake? c. For Pat, what is the opportunity cost of brownies? Of cake? d. Should you and Pat specialize? Who should produce what? e. Suppose that you have so many guests that you have to split up the party into two rooms. You throw one party and Pat throws the other. What are the terms of trade? (At what rate would you each be willing to trade?) f. Using graphs for both you and Pat, show that trade allows each of you to achieve a point on your consumption possibilities curve which is greater than your production possibilities curve. Be sure to label all curves and axes. g. What is this principle called?

Reference no: EM13147888

Questions Cloud

Proper provision for doubtful accounts : Allowance for Doubtful Accounts has a credit balance of $1,500 at the end of the year (before adjustment), and an analysis of customers" accounts indicates doubtful accounts of $17,900. Which of the following entries records the proper provision f..

How many moles of na3c6h5o7 can be produced : 3NaHCO3(aq) + H3C6H5O7(aq) → 3CO2(g) + 3H2O(l) + Na3C6H5O7(aq) How many moles of Na3C6H5O7 can be produced if one tablet containing 0.0119 mol of NaHCO3 is dissolved?

Computing the gross profit percentage : What is the amount of the gross profit? Compute the gross profit percentage (gross profit divided by sales). Will the income statement necessarily report a net income? Explain"

Describe the role of five different post-translation : Describe the function/role of Five different post-translation modifications that occur to proteins.

What are the terms of trade : What are the terms of trade? (At what rate would you each be willing to trade?) f. Using graphs for both you and Pat, show that trade allows each of you to achieve a point on your consumption possibilities curve which is greater t..

Examine differences in average distance traveled to clinics : If we wish to be 95% certain of avoiding a Type I error, use these data to examine differences in the average distance traveled to the two clinics.

Discuss the proper accounting treatment : Discuss the proper accounting treatment, including any required disclosures, for each situation. Give the rationale for your answers.

Descrbe the ph of a buffer soluton consisting : Descrbe the pH of a buffer soluton consisting of 100mL containing 0.1M CH3COOH and 0.125 CH3COO-, both before and after the additon

What are some possible reasons why this would be true : If an analysis is made of the hydraulic conductivity of a site using permeameter tests of core samples, slug tests of monitoring wells, and pumping tests of production wells, it is often observed that the hydraulic conductivity as measured by each me..

User Account

All Pages