Corporate Finance Assignment/ Professional Essay Writers

1. Consider the winter activity of skiing. Assume that the rental cost of ski equipment is $120 and the lift ticket costs $66.  If you go skiing, you would wear the ski jacket you purchased last year for $190. If you do not go skiing, you could either work at your part-time job, which would earn you $101, or study at the library, which you value at $28.

Suppose that you were planning to spend Saturday working at your part-time job, but a friend asks you to go skiing. What is the opportunity cost of going skiing?

Enter a whole number and no dollar sign.

2. Country A and Country B both produce toasters and sweaters. In-country A each worker in a day can produce either 5 toasters or 20 sweaters. In-country B each worker in a day can produce either 3 toasters of 18 sweaters. Each country has a constant opportunity cost of production and each has 100 workers. Enter whole numbers in each blank.

Initially, the two countries do not trade. Country A allocates 60 workers to toaster production and 40 workers to sweater production so they produce a total of toasters and sweaters. Country B allocates 60 workers to toaster production and 40 workers to sweater production so they produce a total of toasters and sweaters.

The two countries decide to completely specialize and then engage in trade. With specialization country A will produce toasters and sweaters, and country B will produce toasters and sweaters. The two countries decide to trade 190 toasters in exchange for 950 sweaters. After trade country A will consume toasters and sweaters, and country B will consume toasters and sweaters.  Get Finance Help Today