Business, 12.03.2020 20:23 meandmycousinmagic

Suppose that Spain and Sweden both produce oil and olives. Spain's opportunity cost of producing a crate of olives is 5 barrels of oil while Sweden's opportunity cost of producing a crate of olives is 10 barrels of oil.

By comparing the opportunity cost of producing olives in the two countries, you can tell that has a comparative advantage in the production of olives and has a comparative advantage in the production of oil.

Suppose that Spain and Sweden consider trading olives and oil with each other. Spain can gain from specialization and trade as long as it receives more than of oil for each crate of olives it exports to Sweden. Similarly, Sweden can gain from trade as long as it receives more thanof olives for each barrel of oil it exports to Spain.

Based on your answer to the last question, which of the following prices of trade (that is, price of olives in terms of oil) would allow both Sweden and Spain to gain from trade? Check all that apply.

1) 7 barrels of oil per crate of olives

2) 11 barrels of oil per crate of olives

3) 6 barrels of oil per crate of olives

4) 4 barrels of oil per crate of olives

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 16:10

Computing depreciation, net book value, and gain or loss on asset sale lynch company owns and operates a delivery van that originally cost $46,400. lynch has recorded straight-line depreciation on the van for four years, calculated assuming a $5,000 expected salvage value at the end of its estimated six-year useful life. depreciation was last recorded at the end of the fourth year, at which time lynch disposes of this van. compute the net bookvalue of the van on the disposal date.

Answers: 1

Answer

Business, 21.06.2019 20:30

He management's discussion and analysis (md& a) required in general purpose federal financial reporting is different than that required by gasb of state and local governments in that: a. it includes information about the agency's performance goals and results in addition to financial activities. b. it is outside the general purpose federal financial report and is optional, not required. c. it is a part of the basic financial statements and, as a result, it is audited along with the financial statements. d. there are no significant differences.

Answers: 2

Answer

Business, 22.06.2019 12:50

Two products, qi and vh, emerge from a joint process. product qi has been allocated $34,300 of the total joint costs of $55,000. a total of 2,900 units of product qi are produced from the joint process. product qi can be sold at the split-off point for $11 per unit, or it can be processed further for an additional total cost of $10,900 and then sold for $13 per unit. if product qi is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point?

Answers: 2

Answer

Business, 22.06.2019 12:50

There is a small, family-owned store that sells food and household goods in a small town. the owners have good relations with the community, especially with local farmers who supply much of the food. the farmers aren't organized into a cooperative or union, and the store deals with each individually. suppose the store wanted to buy some farms to control the supply of certain vegetables. how would you classify this strategic move? select one: a. horizontal integration b. forward integration c. backward integration d. concentric integration

Answers: 2

Answer

You know the right answer?

Suppose that Spain and Sweden both produce oil and olives. Spain's opportunity cost of producing a c...

Questions