Joe and Rita each have some cookies and milk. Joe is willing to trade 2 cookies for an additional ounce of milk. Rita is willing to trade 4 cookies for an additional ounce of milk
If trading is possible, which of the following is most likely to occur? A) Joe will give some milk to Rita in exchange for cookies.
B) Rita will give some milk to Joe in exchange for cookies.
C) No trade will take place since they both prefer to have more milk and fewer cookies.
D) There is not enough information to make any predictions.
A
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Explain why advertising is very important to a monopolistically competitive firm but not to a perfectly competitive firm or a monopolistic firm
James owns two houses. He rents one house to the Johnson family for $10,000 per year. He lives in the other house. If he were to rent the house in which he lives, he could earn $12,000 per year in rent. How much do the housing services provided by the two houses contribute to GDP?
a. $0 b. $10,000 c. $12,000 d. $22,000
If ABC and XYZ operate to jointly maximize profits and agree to share the profit equally, then how much profit will each of them earn?
a. $450
b. $250
c. $105
d. $125
Refer to Table 2-11. Does either China or South Korea have an absolute advantage and if so, in what product?
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