(a) Prepare a report showing the comparative payroll expense of continuing to employ permanent workers compared to adopting the
Kramer Services plan. (Round answers to 0 decimal place, eg. 2500.)
KRAMER SERVICES
Months
Cost
January-March
$
April-May
June-October
November-December
Total Cost
$

Suppose that: 1. malaysia requires 1 hour of labor to produce 1 pound of rice and 2 hours of labor to produce 1 pencil; 2. indonesia requires 2 hours of labor to produce 1 pound of rice and 4 hours of labor to produce 1 pencil; 3. each country has 10,000 hours of labor to allocate between the production of rice and pencils; and 4. in autarky, malaysia consumes 5,000 pounds of rice and 2,500 pencils. which country has an absolute advantage in rice production? in pencil production? which country has a comparative advantage in rice production? in pencil production? will trade between the two countries be mutually beneficial?