Estimate comparative advantage, Financial Accounting

Assignment Help:

The only two countries in the world, Alpha and Omega, face the following production possibilities frontiers (all units measured in tons).
Alpha's Production PossibilitiesFrontier Omega's Production PossibilitiesFrontier

1133_average.png

a) Which country has the absolute advantage in producing popcorn?

b) Which country has the absolute advantage in producing peanuts?

c) What is Alpha's opportunity cost of producing one ton of peanuts?

d) What is Omega's opportunity cost of producing one ton of peanuts?

e) Assume that each country decides to use half of its resources in the production of each good. Show these points on the graphs for each country as point A.

f) If these countries choose not to trade, what would be the total world production of popcorn and peanuts based on the points you drew?

g) Now suppose that each country decides to specialize in the good in which each has a comparative advantage. Who has the comparative advantage in peanuts?

h) Who has the comparative advantage in popcorn?

i) By specializing, what is the total world production of each product now?

j) If each country decides to trade 100 units of popcorn for 100 units of peanuts after specializing, show on the graphs the gain each country would receive from trade. Label these points B.


Related Discussions:- Estimate comparative advantage

Nominal interest rate on new bonds?, Debra Motors's 14% coupon rate, semian...

Debra Motors's 14% coupon rate, semiannual payment, $1,000 par value bonds that mature in 20 years are callable 3 years from now at a price of $1,075. The bonds sell at a price of

Acquisition during the financial period-group accounts, Acquisition during ...

Acquisition during the financial period The holding company may acquire the subsidiary company partway through the financial period such that as at the balance sheet date, the

Auditing., assess the risk of material misstatement at assertion level

assess the risk of material misstatement at assertion level

Qualitative characteristics of the accounting information, PURPOSE The ...

PURPOSE The purpose of this assignment is to provide learners opportunity to discuss the significance of the significance of the accounting principles and the qualitative chara

Assess the liquidity and solvency of the company, Students are to prepare a...

Students are to prepare and report as a financial advisor to an investor as to whether the public company selected is a suitable investment for the investor. In preparing the essay

Communication and leadership, hi could you please help me in my assignment ...

hi could you please help me in my assignment i need it by 11/1/2017

Calculate the optimal allocation of stocks, A) Suppose you have two stocks ...

A) Suppose you have two stocks (A and B) in your portfolio, worth $400,000 and $600,000 respectively. The annual volatility is 0.30 and 0.35 respectively. The correlation between t

Ratios, equity share capital rs 10 200 10% preference share capital 80 15%...

equity share capital rs 10 200 10% preference share capital 80 15% debenture 20 profit before interest and taxes 60 proposed dividend 20 provision fo

Non-quantifiable factors to accept the proposal, Any non-quantifiable facto...

Any non-quantifiable factors you feel might influence the decision to accept the proposal. Net present value methods are merely assessments of factors that we can quantify. The

Journalizing, ABC Corportation purchased $15,000 of office furniture by put...

ABC Corportation purchased $15,000 of office furniture by putting down $7000 soqn in cash and the rest on accout

Write Your Message!

Captcha
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