What is the opportunity cost of producing

Assignment Help Microeconomics
Reference no: EM13175868

Consider the table below for the neighboring nations of Northland and West Coast. The table lists the maximum feasible hourly rates of the production of pastries if no sandwiches are produced and the maximum feasible hourly rates of the production of sandwiches if no pastries are produced. Assume that the opportunity costs of producing these goods are constant in both nations.

Product

Northland

West Coast

Pastries (per hour)

50,000

100,000

Sandwiches (per hour)

25,000

200,000

Based on the data provided, what is the opportunity cost of producing pastries and sandwiches in Northland? What is the opportunity cost of producing pastries and sandwiches in West Coast? Which nation has a comparative advantage in producing pastries and which nation has a comparative advantage in producing sandwiches? Suppose the two nations choose to specialize in producing the goods for which both have a comparative advantage. Both agree to trade at a rate of exchange of one pastry for one sandwich. At this rate of exchange, what are the maximum numbers of pastries and sandwiches that both could agree to trade?

Reference no: EM13175868

Questions Cloud

Explain why chemistry is such an important part of the study : Explain why chemistry is such an important part of the study of Anatomy and Physiology. Please be sure to include specific examples of important chemical reactions as evidence of chemistry's importance to homeostasis.
History of liver disease : During an assessment, the nurse learns that the client has a history of liver disease. Which of the following diagnostic tests is least indicated for this client.
Establish plan to control population growth : If we were to establish a plan to control population growth and it was successful, what other problems do you believe would be diminished or eliminated? Can you name three?
Write the expression for the base dissociation constant : write the expression for the base dissociation constant for hydrazine, N2H4, a weak base. Hydrazine reacts with water to form the N2H5+ ion.
What is the opportunity cost of producing : Based on the data provided, what is the opportunity cost of producing pastries and sandwiches in Northland? What is the opportunity cost of producing pastries and sandwiches in West Coast?
How nitrogen reacts with hydrogen : Nitrogen reacts with hydrogen according to the following equation.
Compute the molar enthalpy of solution for licl : When 5.00g of LiCl is added to 100g of water the temperature of the water was found to increase by 9.94*C. Calculate the molar enthalpy of solution for LiCl. Assume the specific heat of the mixture is 4.18 J/g*C.
Empires develop in the face of modernization : Discuss how and why the Ottoman and Qing Empires “modernized” in the 19th century. What problems and possible solutions did each of these empires develop in the face of “modernization”?
Nomadic societies develop differently than other societies : Read "Encounters with the 'Other.' " How did nomadic societies develop differently than other societies? Classify their interaction with the sedentary states.

Reviews

Write a Review

Microeconomics Questions & Answers

  How to maximize the profit?

Assume a certain firm in a competitive market is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit.

  Inter-temporal production possibilities

Determine which of the following nations would you expect to have intertemporal production possibilities biased toward current consumption goods,

  Violation of the law of demand

Many hotels charge higher prices during the holiday period and yet there is higher demand for hotel accommodation during these periods. Is this a violation of the law of demand? Explain your answer and use theory and illustrations to support your ..

  Is bridget making the utility-maximizing choice

Bridget has a limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese

  Determining price of labor and capital

Given production function Q= 100(L^0.5)(K^0.5), where L = labor hours per unit time, K=machine hours per unit time, and Q=output per unit time.

  Nation economic public policy decisions

To what extent do you think normative economic analysis, as opposed to positive economic analysis, determines our country's economic public rule decisions made by the government?

  How to achieve the goal of doubling exports

Chamber of Commerce, and your colleague has written a position paper and asked you to proof read it. In that report, she concludes; "in 2009, the U.S. exports were $1.571 billion and imports were $1.946 billion, with a resulting trade deficit of $..

  Socially efficient price-units of output-profits

Find out the socially efficient price, units of output and profits? How much output would a monopoly produce? Find out the price and profits of the monopolist?

  Analysis effects of non-price factors on demand

Suppose the demand for computers. For each of the following, state effect on demand, find the equation of the demand curve if consumer incomes are $30,000,

  Estimate the regression model using the ols estimator

Estimate the regression model (E) using the OLS estimator and provide a summary report of the result (i.e., the estimated equation with the standard errors and/or t-ratios with other relevant statistics).

  Purpose of a regional trading arrangement

Choose either the European Union or the North American Free Trade Arrangement, and answer the given questions based on your choice:

  Economic output problems

Write down a paragraph explaining how the Hernandez Corp. finds the least cost combination of inputs for producing the given rate of output.

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