Hi could you explain why the total output of milk without specialization is 30? opportunity cost calculated to understand who should do what in this case. But what will I do to thatnumber?EggsJohnny30K10F10 15MilkWithout specialization, Johnnyproduces combination FType your answers in all of the blanks and submitFor Frankie, the opportunity cost of 1 unit of milk is1Eggs4020You are correctFrankie2040 MilkWithout specialization, Frankieproduces combination Junits of eggs. For Johnny, the opportunityBUYAuthor: NPublisherChapter 1: ...Problem 1QTCNot helpful? SeStuckhomAsk a question ancanswer, in as fastAS Step 1When two individuals, firms, or countries make an exchange of goods and services usingtheir comparative advantage, there will be some gain from this trade due to increasedefficiency and better utilization of resources.Step 2According to the given table, Frankie's opportunity cost of producing milk is 1, and Johnny'sopportunity cost of producing milk is 2. Therefore, Frankie has the comparative advantage inmilk, and Johnny has the comparative advantage in eggs.Without trade, the total production of milk is 30 units, and the total production of eggs is 30units. Therefore, the combined output is 60 units.After the trade, Franky will produce only milk, and Johnny will produce only eggs. So, thetotal production of milk is 40 units, and the total production of eggs is 30 units. Therefore, thecombined output is 70 units.Here, the total output is increased by 10 units of milk. Therefore, According to comparativeadvantage, specialization leads to a gain of 10 units of milk.WAS THIS HELPFUL?

Opportunity cost means the cost of next best alternative - To explain - This means in order to…

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explain why the total output of milk without specialization is 30?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter3: Scarcity, Trade-offs, And Production Possibilities

Section: Chapter Questions

Problem 6P

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Hi could you explain why the total output of milk without specialization is 30?

opportunity cost calculated to understand who should do what in this case. But what will I do to that
number?
Eggs
Johnny
30
K
10
F
10 15
Milk
Without specialization, Johnny
produces combination F
Type your answers in all of the blanks and submit
For Frankie, the opportunity cost of 1 unit of milk is
1
Eggs
40
20
You are correct
Frankie
20
40 Milk
Without specialization, Frankie
produces combination J
units of eggs. For Johnny, the opportunity
BUY
Author: N
Publisher
Chapter 1: ...
Problem 1QTC
Not helpful? Se
Stuck
hom
Ask a question anc
answer, in as fast
AS

Step 1
When two individuals, firms, or countries make an exchange of goods and services using
their comparative advantage, there will be some gain from this trade due to increased
efficiency and better utilization of resources.
Step 2
According to the given table, Frankie's opportunity cost of producing milk is 1, and Johnny's
opportunity cost of producing milk is 2. Therefore, Frankie has the comparative advantage in
milk, and Johnny has the comparative advantage in eggs.
Without trade, the total production of milk is 30 units, and the total production of eggs is 30
units. Therefore, the combined output is 60 units.
After the trade, Franky will produce only milk, and Johnny will produce only eggs. So, the
total production of milk is 40 units, and the total production of eggs is 30 units. Therefore, the
combined output is 70 units.
Here, the total output is increased by 10 units of milk. Therefore, According to comparative
advantage, specialization leads to a gain of 10 units of milk.
WAS THIS HELPFUL?

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