0
What is th logic of producing winter clothing in countries whose residents have very little demand for such clothing?
Wiki User
∙ 13y ago
Although there is no domestic market for countries whose residents produce winter clothing, there is a domestic supply curve. If the world price for clothing is above the minimum price at which the countries would supply any clothing, then in free trade the countries would produce and export the clothing. The countries gain from this because it creates producer surplus.
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
How did countries react to the demand to convert paper money into gold?
The demand to convert paper money into gold was a demand beyond what the treasuries of countries could supply.
Why doesn't Hollister sell plus size clothing?
They do not have a lare demand for plus size clothing. Hollister does not specialize in clothing for plus sizes.
What is the primary function of the Organization of Petroleum Exporting Countries?
The Middle East countries were not really aware of the concentration of oil wealth until World War 2, when demand for oil rose sharply. Thus, oil-producing states established the OPEC to promote their interest in higher revenues.
Why do nations specialize in certain goods and services?
Because countries have different natural, human, and capital resources and different ways of combining these resources, they are not equally efficient at producing the goods and services that their residents demand. The decision to produce any good or service has an opportunity cost, which is the amount of another good or service that might otherwise have been produced. Given a choice of producing one good or another, it is more efficient to produce the good with the lower opportunity cost, using the increased production of that good to trade for the good with the higher opportunity cost.
What effects did nationalism and the demand for form have in Europe?
It united countries and divided countries.
What determines prices in the market?
The cost of producing a good or service along with the demand for that good or service.
Difference Industry demand and Company demand?
firstly group of firms make industry when demand of particular product faced by all companies producing that product or its substituates it is called industry demand like pipe industy effected by shortage of steel
Why was there a demand for slaves among European countries?
The European has demand for slave it is because of the wines and guns that Africagave them.
When does the price of an item decrease?
When demand goes down, or when the company is producing too much and flooding the market.
Why would an economy be producing at a point inside its Production Possibilities Frontier?
The economy would be producing inside it PPF as there would be lesser demand of the goods than the potential supply of the economy hence, in such situation it would be a waste of resources to produce more. The concept of demand management is important here where the demand can be manipulated using the fiscal and monetary policy.
Why is rupee falling?
the ultimate cause is because demand for rupee has fallen and concerned countries are unable to stable this demand which in fact is due to the overall economic conditions in the countries concerned
When a firm makes a profit by producing enough good to meet demand without having leftover supply at what point is it?
When a firm makes a profit by producing enough goods to meet demand without having leftover supply the point of profit is where marginal revenue equals marginal cost.
