Respuesta :
In order to maximize output, Company R should abandon the production of jam to fully specialize in the production of peanut butter and then trade with Company Q for jam.
- A corporation or even a nation should specialize in manufacturing only those goods that they can create better than their rivals, i.e., have a comparative or absolute advantage in their production, according to several views about trade specialization.
- In this instance, Company R should focus solely on producing peanut butter because it has a comparative advantage in doing so. They should trade with Company Q to obtain jam if they are in need of any. Due to their competitive advantage in jam production, Company Q will eventually just produce jam.
Which of the following could cause an increase in the demand for peanut butter?
- Demand changes when one of the demand's non-price determinants changes.
- Since peanut butter is a common item, demand will rise as the number of consumers increases, consumer incomes rise, and prices are anticipated to rise in the future.
Why would an increase in the price of peanut butter cause a decrease in the demand for jelly?
- The jelly demand curve will move to the left (decrease).
- You would purchase less peanut butter if its price rose, thus you would also purchase less jelly (since they are complements).
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