Eddie Guitars 32 28 24 20 16 12 8 4 0 Tubas 0 1 2 3 4 5 6 7 8 Dave Guitars 25 20 15 10 5 0 Tubas 0 1 2 3 4 5 35 30 25 20 15 10 5 0 30 25 20 15 10 5 0 0 0 2 1 2 4 3 6 8 5 10 6 Eddie and Dave both produce guitars and tubas. They produce a given amount of each per month as seen in the tables above. Given the production possibilities curves of each individual above, answer the following: Who has the absolute advantage in the production of tubas? Dave, because he must sacrifice 5 guitars to produce an extra tuba compared to Dave's sacrifice of 4 guitars Both since each must sacrifice 1 more tuba to move to the next point on the production possibilities curve O Eddie, because he produces 8 tubas compared to Dave's 5 tubas Eddie, because he must sacrifice 4 guitars to produce an extra tuba compared to Dave's sacrifice of 5 guitars Dave, because he produces 5 tubas compared to Dave's 8 tubas Neither has an absolute advantage in the production of tubas

Eddie Guitars 32 28 24 20 16 12 8 4 0 Tubas 0 1 2 3 4 5 6 7 8 Dave Guitars 25 20 15 10 5 0 Tubas 0 1 2 3 4 5 35 30 25 20 15 10 5 0 30 25 20 15 10 5 0 0 0 2 1 2 4 3 6 8 5 10 6 Eddie and Dave both produce guitars and tubas. They produce a given amount of each per month as seen in the tables above. Given the production possibilities curves of each individual above, answer the following: Who has the absolute advantage in the production of tubas? Dave, because he must sacrifice 5 guitars to produce an extra tuba compared to Dave's sacrifice of 4 guitars Both since each must sacrifice 1 more tuba to move to the next point on the production possibilities curve O Eddie, because he produces 8 tubas compared to Dave's 5 tubas Eddie, because he must sacrifice 4 guitars to produce an extra tuba compared to Dave's sacrifice of 5 guitars Dave, because he produces 5 tubas compared to Dave's 8 tubas Neither has an absolute advantage in the production of tubas

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 3CQQ

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Before Frank and Ruby engage in trade, each ofthema. consumes at a point inside his or her productionpossibilities frontier.b. consumes at a point on his or her productionpossibilities frontier.c. consumes at a point outside his or her productionpossibilities frontier.d. consumes the same amounts of meat andpotatoes as the other
After Frank and Ruby engage in trade, each of thema. consumes at a point inside his or her productionpossibilities frontier.b. consumes at a point on his or her productionpossibilities frontier.c. consumes at a point outside his or her productionpossibilities frontier.d. consumes the same amounts of meat andpotatoes as the other.
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