Suppose that france and denmark both produce fish and stained glass. france's opportunity cost of producing a pane of stained glass is 3 pounds of fish while denmark's opportunity cost of producing a pane of stained glass is 11 pounds of fish.
by comparing the opportunity cost of producing stained glass in the two countries, you can tell france or denmark) has a comparative advantage in the production of stained glass or denmark) has a comparative advantage in the production of fish.
suppose that france and denmark consider trading stained glass and fish with each other. france can gain from specialization and trade as long as it receives more than of fish for each pane of stained glass it exports to denmark. similarly, denmark can gain from trade as long as it receives more of stained glass for each pound of fish it exports to france.
based on your answer to the last question, which of the following prices of trade (that is, price of stained glass in terms of fish) would allow both denmark and france to gain from trade? check all that apply.
4 pounds of fish per pane of stained glass
2 pounds of fish per pane of stained glass
1 pound of fish per pane of stained glass
7 pounds of fish per pane of stained glass
Answers: 2
Other questions on the subject: Business
Business, 22.06.2019 15:00, cheyfaye4173
Oerstman, inc. uses a standard costing system and develops its overhead rates from the current annual budget. the budget is based on an expected annual output of 120,000 units requiring 480,000 direct labor hours.(practical capacity is 500,000 hours)annual budgeted overhead costs total $772,800, of which $556,800 is fixed overhead. a total of 119,300 units, using 478,000 direct labor hours, were produced during the year. actual variable overhead costs for the year were $260,400 and actual fixed overhead costs were $555,450.required: 1. compute the fixed overhead spending variance and indicate if favorable or unfavorable.2. compute the fixed overhead volume variance and indicate if favorable or unfavorable.
Answers: 3
Business, 22.06.2019 19:50, joel4676
The new york company produces high quality chairs. variable manufacturing overhead is applied at a standard rate of $12 per machine hour. each chair requires a standard quantity of six machine hours. production for the month totaled 4,000 units. calculate: the standard cost per unit for variable overhead. select one: a. $130,000 b. $192,000 c. $90,000 d. $100,000
Answers: 2
Business, 22.06.2019 21:40, brianmondesir1owahud
Rebel technology maintains its records using cash-basis accounting. during the year, the company received cash from customers, $43,000, and paid cash for salaries, $23,500. at the beginning of the year, customers owe rebel $1,000. by the end of the year, customers owe $6,600. at the beginning of the year, rebel owes salaries of $5,600. at the end of the year, rebel owes salaries of $3,300. determine cash-basis net income and accrual-basis net income for the year.
Answers: 2
You know the right answer?
Suppose that france and denmark both produce fish and stained glass. france's opportunity cost of pr...
Questions in other subjects:
Social Studies, 11.07.2019 06:30
Social Studies, 11.07.2019 06:30
History, 11.07.2019 06:30
