Answer:
The opportunity cost for Janet to create a pizza amounts to 0.67 gallons of root beer, while for Megan it is 0.71 gallons of root beer.
Janet possesses an absolute advantage in pizza making, and Janet also has a comparative advantage in this activity.
When it comes to trading, Janet will exchange pizza for root beer. The price of pizza can be represented by the amount of root beer in gallons. To ensure both roommates benefit, the highest trade price for pizza is 0.71 gallons of root beer, while the minimum price allowing for mutual benefit is 0.67 gallons of root beer per pizza.
Explanation:
For Janet, the cost to produce one gallon of root beer is 3/2, which equals 1.5 pizzas.
Janet's cost for making a pizza is calculated as 2/3, resulting in 0.67 gallons of root beer.
As for Megan, her cost to produce a gallon of root beer is 7/5, translating to 1.4 pizzas.
Megan's cost of producing a pizza is 5/7, which equals 0.71 gallons of root beer.
Opportunity costs represent the additional expenses or benefits forfeited when electing one action or investment in place of another option. For instance, Janet can create either 1.5 pizzas or 1 gallon of root beer in a span of 3 hours, but she cannot accomplish both simultaneously; she must make a choice between the two options.
Answer: (A) Greenfield investment
Explanation:
A greenfield investment is a form of Foreign Direct Investment (FDI) aimed at constructing various new production facilities within a business.
The primary aim of the greenfield investment method is to provide investors with control while creating diverse opportunities for managing market partnerships.
Based on the provided question, the greenfield investment method is instrumental in establishing new operations in Indonesia, thus representing a type of foreign direct investment.
Therefore, Option (A) is the correct selection.
Answer:
To maximize utility, the consumption of product Y should be increased while reducing the intake of product X.
Explanation:
The utility-maximizing principle asserts that a consumer optimizes utility when the marginal utility per dollar spent is equal for both products.
For Product X, the marginal utility per dollar is:
= 2 utils per dollar
For Product Y, the marginal utility per dollar is:
= 8 utils per dollar
According to this principle, the consumer should increase the consumption of product Y and decrease that of product X.
Response:
Details:
The journal entry for the payment received on April 13 from a customer is recorded as:
Date Account title and explanation Ref Debit Credit
Apr-13 Cash ($5000 - $150) $4,850
Sales discount ($5000* 3%) $150
Accounts receivable
$5000
(To document the payment received from the customer after discount
Response:
It is estimated that between 1100 and 1300 high school students in Detroit could obtain a gun if they desired to do so.
Rationale:
For the lower boundary, take 55% of 2000, which equals 0.55 × 2000 = 1100.
For the higher boundary, take 65% of 2000, equaling 0.65 × 2000 = 1300.
Therefore, the calculated range of students in Detroit who could obtain a firearm is from 1100 to 1300.
