Exchange and Specialization as a Discovery Process

Microeconomics

Suppose that two people, Michelle and James each live alone in an isolated region. They each have the same resources available, and they grow potatoes and raise chickens. If Michelle devotes all her resources to growing potatoes, she can raise 200 pounds of potatoes per year. If she devotes all her resources to raising chickens, she can raise 50 chickens per year. (If she apportions some resources to each, then she can produce any linear combination of chickens and potatoes that lies between those extreme points. If James devotes all his resources to growing potatoes, he can raise 80 pounds of potatoes per year. If he devotes all his resources to raising chickens, he can raise 40 chickens per year. (If he apportions some resources to each, then he can produce any linear combination of chickens and potatoes that lies between those extreme points.)

Don't use plagiarized sources. Get Your Custom Essay on
Exchange and Specialization as a Discovery Process
Just from $9/Page
Order Essay

Opportunity Cost

The opportunity cost represents the amount of a certain good that one party is forced to forgo in favor of producing another good (Bowles, 2006). Accordingly, in this scenario Michelle’s opportunity cost for producing potatoes is 50 chickens because this is the precise number of chickens she would be giving up by growing only potatoes. Conversely, Michelle’s opportunity cost for growing chickens is 200 potatoes because this is the precise number of potatoes she would be forgoing by growing chickens. James’ opportunity cost for growing potatoes is 40 chickens because this is the precise number of chickens he would be giving up in order to grow only potatoes. Conversely, his opportunity cost for growing chickens is 80 potatoes because this is the precise number of potatoes he would be forgoing in order to grow only chickens.

Absolute Advantage

The absolute advantage refers to the party with the greatest capacity to produce (Bowles, 2006). In other words, an entity with an absolute advantage can produce the greatest quantity. However, it is important to note that an absolute advantage does not take into account productive efficiency (Bowles, 2006). Thus, in this case, Michelle has the absolute advantage in producing both goods because she has the capacity to produce more of both chickens and potatoes.

Comparative Advantage

Comparative advantage refers to one party’s ability to produce relative to another party’s ability to produce (Bowles, 2006). This concept aims to determine which producer is more efficient at producing a certain good. In the above example, Michelle would possess the comparative advantage in the production of potatoes because she is capable of producing more than two times the amount of potatoes that James is capable of producing, while only forgoing 50 chickens. Thus she would have a larger supply of potatoes and could sell them at a lower price than James and potentially realize an even greater profit. Conversely, James possesses the comparative advantage when it comes to chickens because while he is only capable of producing 40 chickens (which is less than the amount Michelle is capable of producing) he would only be forgoing profits attainable from 80 potatoes. Whereas if Michelle were to produce chickens she would be forgoing the profits attainable from 200 potatoes, thus it would be highly inefficient for her to only produce chickens.

Specialization and Exchange

If each party mentioned above were to specialize in producing the selected good in which they each possess a comparative advantage and then engage in exchange, they would certainly be better off (Crockett, Smith, & Wilson, 2010). By trading at a rate of 2.5 pounds of potatoes per 1 chicken both Michelle and James would ultimately benefit. If James were to trade all of the chickens he produced (40) for potatoes, he would have more potatoes than he would normally be capable of producing (100). The same would be the case if Michelle were to trade the maximum number of potatoes.

Global Economy

Many business, nations and economies engage in this type of activity. In fact, the entire foundation of modern world trade revolves around these principles (Crockett, Smith, & Wilson, 2010). Businesses trade resources, information, customers and capital with one another all the time. Nations with a comparative advantage in one economic field often specialize in that product or service and engage in trade with other economies (Bowles, 2006). The agriculture and manufacturing industries provide perfect examples of this type of specialization, whereby “producer” countries will specialize in production and exportation of specific items and import others (Bowles, 2006). While this is the basis of the current global system, it certainly has its shortcomings. For instance, producer countries that wish to serve the needs of major importers (like the United States) and constantly pressured to keep costs (like labor) down in order for their goods to remain fiscally attractive to foreign buyers. This reality has lead to quite a bit of human exploitation and neglect.

Bibliography

Bowles, S. (2006). Microeconomics: Behavior, Institutions, and Evolution. Princeton, NJ: Princeton University Press.

Crockett, S., Smith, V., & Wilson, B. (2010). Exchange and Specialization as a Discovery Process. Retrieved June 9, 2011, from http://ideas.repec.org/p/gms/wpaper/1001.html


Get Professional Assignment Help Cheaply

Buy Custom Essay

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

  • Plagiarism free papers
  • Timely delivery
  • Any deadline
  • Skilled, Experienced Native English Writers
  • Subject-relevant academic writer
  • Adherence to paper instructions
  • Ability to tackle bulk assignments
  • Reasonable prices
  • 24/7 Customer Support
  • Get superb grades consistently
 

Online Academic Help With Different Subjects

Literature

Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.

Finance

Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!

Psychology

While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.

Engineering

Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.

Nursing

In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.

Sociology

Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.

Business

We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!

Statistics

We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.

Law

Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

  • When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
  • We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

  • The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
  • We will have a different writer write the paper from scratch.
  • Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment  Help Service Works

1.      Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2.      Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3.      Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4.      Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

smile and order essaysmile and order essay PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!

order custom essay paper