Business, 17.03.2020 23:40 hdjsjfjruejchhehd
Kate and Sarah work in a bakery for 8 hours per day. Kate can make 1 cake in 1 hour or 1 loaf of bread in 2 hours. Sarah can make 1 cake in 30 minutes or 1 loaf of bread in 40 minutes. Assume that resource is perfectly adaptable to the production of each good i. e. the PPF is a straight line.
1. Who has the absolute advantage in cakes? In bread? Why?
2. What is Kate's opportunity cost for producing one cake (in terms of loaves of bread)?
3. What is Sarah's opportunity cost for producing one cake (in terms of loaves of bread)?
4. Who has the comparative advantage in cakes? In bread? Why?
Answers: 3
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Singer and mcmann are partners in a business. singerβs original capital was $40,000 and mcmannβs was $60,000. they agree to salaries of $12,000 and $18,000 for singer and mcmann respectively and 10% interest on original capital. if they agree to share remaining profits and losses on a 3: 2 ratio, what will mcmannβs share of the income be if the income for the year was $15,000?
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Kate and Sarah work in a bakery for 8 hours per day. Kate can make 1 cake in 1 hour or 1 loaf of bre...
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