Salads (per hour)40353025ur buy20 saladsfrom joe20Joe buys 10smoothies15from Lie10Joe'sPPFLi'sPPFis30 15202540Smeothles (per hour)The figure above shows Liz's and Joe's production possibilities for Salads andSmoothies.Using the figure above, suppose with no trade Liz and Joe each produce at pointA on their respective PPFS. Then, Joe suggests that they specialize and trade. Hewould produce only salads and Liz would produce only smoothies. Then, Joesays, he would buy 16 smoothies from Liz at a price of 1.5 salads per smoothie.Liz shouldA) accept Joe's offer since she will gain 4 salads, but no smoothiesB) accept Joe's offer since she will gain 4 smoothies and 4 salads.OC) not accept Joe's offer since she would lose 2 smoothies and 2 salads.D) accept Joe's offer, as she will be as well off as with no trade.

In business investigation, the production possibility curve (PPF) is a bend that represents the…

25 U buy 20 salads from joe 20 Joe bays 10 smoothies from Li 15 10 Lir's Joe's PPF • 10 is 20 25 30 Smeothias (per heur) The figure above shows Liz's and Joe's production possibilities for Salads a Smoothies. Using the figure above, suppose with no trade Liz and Joe each produce at A on their respective PPFS. Then, Joe suggests that they specialize and trac would produce only salads and Liz would produce only smoothies. Then, Jo says, he would buy 16 smoothies from Liz at a price of 1.5 salads per smoot Lis chold SE

25 U buy 20 salads from joe 20 Joe bays 10 smoothies from Li 15 10 Lir's Joe's PPF • 10 is 20 25 30 Smeothias (per heur) The figure above shows Liz's and Joe's production possibilities for Salads a Smoothies. Using the figure above, suppose with no trade Liz and Joe each produce at A on their respective PPFS. Then, Joe suggests that they specialize and trac would produce only salads and Liz would produce only smoothies. Then, Jo says, he would buy 16 smoothies from Liz at a price of 1.5 salads per smoot Lis chold SE

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter2: Thinking Like An Economist

Section: Chapter Questions

Problem 3PA

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