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1-2 paragraphs. 2 peer reviews
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A difference in opportunity costs between businesses can lead to a
comparative advantage in the production of a good and the decision to
trade.
For this discussion, first play the simulation games Comparative
Advantage (Without Trade) and Comparative Advantage (With Trade) in
the MindTap environment. Then, you will share your experiences playing
the games. Your work in this discussion will directly support your
success on the course project.
In your initial post, include the image of your simulation report in your
response. See the How to Submit a Simulation Report Image
PDF document for more information. Then, address the following
questions:
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Imagine you own your own business. How would you
evaluate opportunity costs and comparative advantage when
making business decisions?
Look up a Production Possibilities Frontier (PPF) graph. What role
does the production possibility frontier (PPF) model have in
making business decisions regarding specialization and trade?
In your responses, comment on the posts of at least two peers whose
simulations had different outcomes than your own. Research and
provide examples of companies in the news that are relevant to your
peers’ comments on the value of comparative advantage for making
their business decisions.
To access your simulations, click the simulation link found in the module.
Peer 1
Myasia Da posted Jan 18, 2024 5:05 PM
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Hey class,
I completed the assignment however, I wasn’t able to get any results. Did
anyone else have this issue, if so how did you fix it? I took a quick screen shot
of what I could before it went away. Please see below.
when making business decisions, opportunity cost evaluation is taking into
account the possible advantages that are lost when selecting one course of
action over another. Finding areas where a company has a relative efficiency
or cost advantage over competitors is the main goal of comparative advantage.
Making decisions that optimize benefits requires balancing these
considerations.
The tradeoffs between two items that a company can generate with its
available resources are depicted in the production potential frontier. PPF is
essential for recognizing the opportunity cost of specialization in business
decisions. In the end, it improves overall efficiency and profitability by
assisting in the identification of the most profitable resource allocation and
providing guidance on whether to specialize in particular products or engage
in trade to take advantage of comparative advantages.
Peer 2
Thomas Wt posted Jan 18, 2024 11:04 AM
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Good day,
I run a business that only handles little trades; the most significant
transactions we have to worry about are when we are decorating the
condo, during that time after we research high-valued rentals. We have
to see where we get the biggest bang for our buck. If we change color
schemes or predominate decorations, for example, a cowboy-themed
condo to an oceanside villa, we have to weigh out the options of paint
and decor and if we will receive the money back in short or long-term
rentals. The opportunity costs of spending time and money on a
complete redo versus the costs of keeping the theme and renting as is,
even if the current article has slightly less appeal than the oceanside
villa.
The pdf would be based on how many renters we would receive based on
a cowboy theme or an oceanside villa theme.
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