Business
Business, 15.02.2021 19:40, rose3358

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

answer
Answers: 2

Other questions on the subject: Business

image
Business, 21.06.2019 17:00, eliezer25
Problems and applications q3 suppose the demand for french bread falls. illustrate the effect this has on the market for french bread. demand supply price of french bread quantity of french bread d 1 d 2 supply producer surplus in the market for french breadincreases . illustrate the effect the quantity change in french bread has on the market for flour. demand supply price of flour quantity of flour d 1 d 2 s 1 s 2 producer surplus in the market for flour .
Answers: 1
image
Business, 22.06.2019 14:00, mrfishyyyy
Your dormitory, griffingate, has appointed you central banker of its economy, which deals in the currency of wizcoins. assume that the velocity of wizcoins in griffingate is constant at 10,000 transactions per year. right now, real gdp is 1,000 wizcoins, and there are 2,000 wizcoins in existence.
Answers: 2
image
Business, 22.06.2019 18:10, zaratayyibah
Ashop owner uses a reorder point approach to restocking a certain raw material. lead time is six days. usage of the material during lead time is normally distributed with a mean of 42 pounds and a standard deviation of four pounds. when should the raw material be reordered if the acceptable risk of a stockout is 3 percent?
Answers: 1
image
Business, 22.06.2019 19:50, alexdziob01
Right medical introduced a new implant that carries a five-year warranty against manufacturer’s defects. based on industry experience with similar product introductions, warranty costs are expected to approximate 2% of sales. sales were $8 million and actual warranty expenditures were $42,750 for the first year of selling the product. what amount (if any) should right report as a liability at the end of the year?
Answers: 2
Do you know the correct answer?
Suppose that Spain and Germany both produce rye and shoes. Spain's opportunity cost of producing a p...

Questions in other subjects:

Konu
Mathematics, 06.06.2021 22:40