Final answer:
While it appears Apple might have a large margin between the cost of materials and the selling price of the iPhone 7, Apple's actual profit cannot be precisely determined from the given information. Costs such as manufacturing, research and development, and marketing must also be considered. For the trade question, the trade price must be higher than the higher production cost of the two countries, which is $10.
Step-by-step explanation:
The question asks whether we can conclude that Apple's profit on the iPhone 7 is about $424 per unit, based on an estimated cost of materials being $225 and a selling price of $649, as reported by Don Reisinger. However, this assumption does not take into account the other costs associated with bringing the iPhone 7 to market, such as manufacturing, research and development, marketing, distribution, software development, and after-sales support. To truly understand Apple's profit, we need a more detailed cost analysis that includes these additional expenses beyond just the cost of materials.
Regarding the price at which countries would engage in trade for mobile phones, the minimum price would need to be above the production costs for both countries. Since South Korea can produce phones at a cost of $5 and Taiwan at $10, the trade price must be higher than $10 for both countries to benefit. Without additional context, we cannot specify an exact price, but it must satisfy both parties involved in the trade.