Refer to the figure. before specialization and trade, adam and deirdre each divide his and her time equally between the production of tacos and burritos. then, both decide they could be better off if they specialized in the production of one good and traded with each other. if adam specializes in burritos and deirdre specializes in tacos and they trade 200 tacos for 125 burritos, adam anddeirdre’s gains from trade will be
identical with both gaining 0 tacos and 75 burritos.
identical with both gaining 200 tacos and 125 burritos.
larger for adam than for deirdre.
larger for deirdre than for adam.

Problems and applications q3 suppose the demand for french bread falls. illustrate the effect this has on the market for french bread. demand supply price of french bread quantity of french bread d 1 d 2 supply producer surplus in the market for french breadincreases . illustrate the effect the quantity change in french bread has on the market for flour. demand supply price of flour quantity of flour d 1 d 2 s 1 s 2 producer surplus in the market for flour .

Guardian inc. is trying to develop an asset-financing plan. the firm has $450,000 in temporary current assets and $350,000 in permanent current assets. guardian also has $550,000 in fixed assets. assume a tax rate of 40 percent. a. construct two alternative financing plans for guardian. one of the plans should be conservative, with 70 percent of assets financed by long-term sources, and the other should be aggressive, with only 56.25 percent of assets financed by long-term sources. the current interest rate is 12 percent on long-term funds and 7 percent on short-term financing. compute the annual interest payments under each plan.

Each month, business today publishes a news piece about an innovative product, service, or business. such soft news is generally written by a freelance business writer and is known as a