What is the opportunity cost of pearls on each island

Assignment Help Econometrics
Reference no: EM13207391

Alpha and Beta, two tiny islands off the east coast of Tricoli, produce pearls and pineapples. The production-possibilities schedules in the table below describe their potential output in tons per year.

(a) What is the opportunity cost of pearls on each island (before trade)?

(b) Which island has a comparative advantage in pineapple production?

Alpha Beta Pearls Pineapples Pearls Pineapples 0 30 0 20 2 25 10 16 4 20 20 12 6 15 30 8 8 10 40 4 10 5 45 2 12 0 50 0

Reference no: EM13207391

Questions Cloud

Explain what is kelvin temperature : gas has a volume of 0.40 L and a pressure of 6.0 atm, what is its kelvin temperature?
Determine what will the new equilibrium price be : Assume the following data describe the gasoline market: Price per gallon $2.00 2.25 2.50 2.75 3.00 3.25 3.50 Quantity Demanded 32 30 29 28 22 21 20 Quantity Supplied 16 20 24 28 32 36 40 (a) What is the equilibrium price
Compute the concentration of calcium ion : calculate the concentration of calcium ion (in mg/L -1) in the water (25C). What assumptions are made in carrying out the calculation?
Explain what is the volume of air in the tank : scuba divers has a volume of 8.0 L and a pressure of 140 atm at 20 degrees C. What is the volume of air in the tank in liters at STP?
What is the opportunity cost of pearls on each island : Alpha and Beta, two tiny islands off the east coast of Tricoli, produce pearls and pineapples. The production-possibilities schedules in the table below describe their potential output in tons per year. (a) What is the opportunity cost of pearls on..
Compute the partial pressure of carbon dioxide : septic tank has a pH of 6.90 and HCO3- concentration of 8.25 mmol L-1. Calculate the partial pressure of carbon dioxide in the associated soil atmosphere.
Determine how will the output change per year : Assume that total output is determined by the formula: number of workers × productivity = total output (output per worker) If an economy's productivity increases by 5 percent but the number of workers declines by 3 percent a year
State isopentyl alcohol with an excess of acetic acid : isopentyl alcohol with an excess of acetic acid, how many gras of isopentyl acetate( MW =130.2 g/mol) would you hav if the yield was 75%?
By what percentage did nominal gdp increase : Suppose the following data describe output in two different years. Item Year 1 Year 2 Apples Bicycles Movie Rentals 20,000 @ 25¢ each 700 @ $800 each 6,000@ $1.00 each 30,000 @ 30¢ each 650 @ $900 each 8,000 @ $1.50 each

Reviews

Write a Review

Econometrics Questions & Answers

  Which option is better to keep marr effective

buy a computer for $2,500 now, keep it for 8 years and then sell it for $800. The computer is not expected to require any maintenance for the first 3 years, but starting in year 4, the maintenance cost will be $250 per year. Alternatively, you can..

  Find number of workersthen the long run average cost curve

Suppose McDonalds puts up five new stores in San Francisco using exactly the same floor plan, capital equipment, and number of workersthen the long run average cost curve of McDonalds would be  and the company experiences

  What is the meaning of the marginal utitilty

Find the marginal utitlity for each chicken piece. What is the meaning of the marginal utitilty of the 11th piece? If the price of chicken pieces is $1.25 each, how many will you buy? If the price falls to $0.50, how many will you buy? Explain carefu..

  How many car-rental days must jims have a month to breakeven

Jim's Car Rental has fixed costs of $220,000 per month and variable costs per car rented per day of $3. If Jim's charges $25 per day to rent a car, how many car-rental days (the number of cars rented times the number of days each is rented) must J..

  How much money will you accumulate for an interest rate

One of life's great lessons is to start early and save all the money you can! If you save two dollars today and two dollars each and every day thereafter until you are 60 years old, how much money will you accumulate

  Forecast the tire sales for february through may

Use simple exponential smoothing with a=0.33 to forecast the tire sales for February through May. Assume that the forecast for January was for 22 sets of tires. Months / Auto Tire Sales Jan / 28 feb / 21 ..

  Calculate the total economic profit

What is the profit maximizing (loss minimizing) level of output for Chan in the SR? ii) Calculate the total economic profit (or loss) that Chan. would receive at this particular level of output. You must show all of your work to r..

  Could cpi benefit by advertising in perfectly competition

One question that arose during the meeting was about how the firm's profitability in their toothpaste division would be impacted by the expansion. The Board asked you to assess the profit potential using marginal analysis.

  What is the cost per child for these additional 20 children

Your accountants tell you that it costs $400 to set up an immunization program at a preschool and immunize one child against polio. It will cost $460 to immunize 20 more children.What is the cost per child for these additional 20 children

  Find v- nominal gdp

calculate the V(gdp) using the velocity formula.  All given is a LRAS graph with the following information derived from the graph Real GDP = 9 trillion and Price level = 3; Furthermore The AD line intercepts the x axis at 18 trillion and the y axis ..

  Estimate the maintenance cost on a new car

Each subsequent year, this cost is expected to increase by $100. How much would you need to set aside when you bought a new car to pay all future maintenance cost if you planned to keep the vehicle for 7 years? Assume interest is 5% pear.

  What is the amount of profit that jonathan can maximize

Jonathan (a monopolist) maximizes profit by producing a quantity of 800 pillows where marginal cost is $2 and average cost is $4. Consumers are willing to pay as high as $10 per pillow when the quantity supplied is 800 pillows.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd