Business, 06.07.2021 23:10 lidi92

Suppose that Portugal and Germany both produce beer and stained glass. Portugal's opportunity cost of producing a pane of stained glass is 4 barrels of beer while Germany's opportunity cost of producing a pane of stained glass is 10 barrels of beer. By comparing the opportunity cost of producing stained glass in the two countries, you can tell that _ has a comparative advantage in the production of stained glass and _ has a comparative advantage in the production of beer.
Suppose that Portugal and Germany consider trading stained glass and beer with each other. Portugal can gain from specialization and trade as long as it receives more than _ of beer for each pane of stained glass it exports to Germany. Similarly, Germany can gain from trade as long as it receives more than _ of stained glass for each barrel of beer it exports to Portugal.
Based on your answer to the last question, which of the following prices of trade (that is, price of stained glass in terms of beer) would allow both Germany and Portugal to gain from trade?
a. 8 barrels of beer per pane of stained glass.
b. 6 barrels of beer per pane of stained glass.
c. 2 barrels of beer per pane of stained glass.
d. 18 barrels of beer per pane of stained glass.

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 18:20, jordan495413

Which of the following accurately describes a situation in which consumers have elastic demand? a. a restaurant starts using margarine instead of butter because butter becomes more expensive. b. consumers boycott a restaurant because the waiters aren't paid minimum wage. c. a company starts using sugar instead of corn syrup because its revenues are up. d. people give up eating pasta and bread because they want to lose weight. 2b2t

Answers: 1

continue

Business, 22.06.2019 12:00, elianagilbert3p3hh63

Areal estate agent is considering changing her cell phone plan. there are three plans to choose from, all of which involve a monthly service charge of $20. plan a has a cost of $.42 a minute for daytime calls and $.17 a minute for evening calls. plan b has a charge of $.52 a minute for daytime calls and $.15 a minute for evening calls. plan c has a flat rate of $80 with 275 minutes of calls allowed per month and a charge of $.38 per minute beyond that, day or evening. a. determine the total charge under each plan for this case: 150 minutes of day calls and 70 minutes of evening calls in a month. (do not round intermediate calculations. round your answer to 2 decimal places. omit the "$" sign in your response.)c. if the agent will use the service for daytime calls, over what range of call minutes will each plan be optimal? (round each answer to the nearest whole number. include the indifference point itself in each answer.)d. suppose that the agent expects both daytime and evening calls. at what point (i. e., percentage of total call minutes used for daytime calls) would she be indifferent between plans a and b?

Answers: 1

continue

Business, 22.06.2019 12:10, Marcus2935

Gwen, a manager at exude apparels inc., received a message from a customer requesting a replacement for a purchased pair of shoes. exude apparels has a clearly stated no-return policy. gwen responded to the customer denying the request in a tactful and clear manner. despite this, the customer submitted a second request. in this scenario, which of the following is an appropriate response to the second request?

Answers: 2

continue

Business, 23.06.2019 00:00, zhellyyyyy

The gorman group is a financial planning services firm owned and operated by nicole gorman. as of october 31, 2016, the end of the fiscal year, the accountant for the gorman group prepared an end-of-period spreadsheet, part of which follows:

Answers: 2

continue

You know the right answer?

Suppose that Portugal and Germany both produce beer and stained glass. Portugal's opportunity cost o...