EddieGuitars322824201612840Tubas0123DaveGuitars252015105045678Tubas012345353025201510503025201510500021243685106Eddie and Dave both produce guitars and tubas. They produce a given amountof each per month as seen in the tables above. Given the productionpossibilities curves of each individual above, answer the following:Who has the absolute advantage in the production of guitars?Dave, because he produces 25 guitars compared to Eddie's 32 guitarsEddie, because he produces 32 guitars compared to Dave's 25 guitarsEddie, because he produces 8 tubas compared to Dave's 5 tubasEddie, because his opportunity cost is only 4 guitarsEddie, because his opportunity cost is only 0.25 tubasDave, because he produces 5 tubas compared to Eddie's 8 tubas EddieGuitars322824201612840Tubas01DaveGuitars25201510502345678Tubas0123453530252015105030252015105000212436485106Eddie and Dave both produce guitars and tubas. They produce a given amountof each per month as seen in the tables above. Given the productionpossibilities 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 extratuba compared to Dave's sacrifice of 4 guitarsBoth since each must sacrifice 1 more tuba to move to the next point on theproduction possibilities curveEddie, because he produces 8 tubas compared to Dave's 5 tubasEddie, because he must sacrifice 4 guitars to produce an extratuba compared to Dave's sacrifice of 5 guitarsDave, because he produces 5 tubas compared to Dave's 8 tubasONeither has an absolute advantage in the production of tubas

Absolute advantage is when the one can produce more with the same recourse. Comparative advantage…

Eddie Guitars 32 28 24 20 16 12 8 4 0 Tubas 0 1 2 3 Dave Guitars 25 20 15 10 5 0 4 5 6 7 8 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 guitars? Dave, because he produces 25 guitars compared to Eddie's 32 guitars Eddie, because he produces 32 guitars compared to Dave's 25 guitars Eddie, because he produces 8 tubas compared to Dave's 5 tubas Eddie, because his opportunity cost is only 4 guitars Eddie, because his opportunity cost is only 0.25 tubas Dave, because he produces 5 tubas compared to Eddie's 8 tubas

Eddie Guitars 32 28 24 20 16 12 8 4 0 Tubas 0 1 2 3 Dave Guitars 25 20 15 10 5 0 4 5 6 7 8 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 guitars? Dave, because he produces 25 guitars compared to Eddie's 32 guitars Eddie, because he produces 32 guitars compared to Dave's 25 guitars Eddie, because he produces 8 tubas compared to Dave's 5 tubas Eddie, because his opportunity cost is only 4 guitars Eddie, because his opportunity cost is only 0.25 tubas Dave, because he produces 5 tubas compared to Eddie's 8 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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Similar questions

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