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If Andres and David decide to specialize and cooperate, then Andres will produce sandwiches and David will produce salads.

If Andres and David decide to specialize and cooperate, then Andres will produce sandwiches and David will produce salads.

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter2: Choice In A World Of Scarcity
Section: Chapter Questions
Problem 2SCQ: Return to the example in Figure 2.4. Suppose there is an improvement in medical technology that...
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J Question 28 If Andres and David decide to specialize and cooperate, then Andres will produce sandwiches and David will produce salads.
Transcribed Image Text:J Question 28 If Andres and David decide to specialize and cooperate, then Andres will produce sandwiches and David will produce salads.
A Question 27 Andres and David each own a restaurant. The preferred menu item by customers is their sandwich-salad combo. Assume that Andres and David have the same amount of time each morning to produce sandwiches and salads. If David only makes salads, he can prepare 100; if he only prepares sandwiches, he can produce 75. On the other hand, if Andres only produces salads, he can do 35, and if he only prepares sandwiches, he can only prepare 7. Based on this information, answer the following questions: a. Who has an absolute advantage in producing salads? David b. Who has an absolute advantage in producing sandwiches? David c. What is Andres' opportunity cost of producing one salad? This is a numeric answer. 1/5 d. What is Andres' opportunity cost of producing one sandwich? This is a numeric answer. e. What is David's opportunity cost of producing one salad? This is a numeric answer. 3/4 f. What is David's opportunity cost of producing one sandwich? This is a numeric answer. g. Who has a comparative advantage in producing salads? David h. Who has a comparative advantage in producing sandwiches? Andres 5 4/3
Transcribed Image Text:A Question 27 Andres and David each own a restaurant. The preferred menu item by customers is their sandwich-salad combo. Assume that Andres and David have the same amount of time each morning to produce sandwiches and salads. If David only makes salads, he can prepare 100; if he only prepares sandwiches, he can produce 75. On the other hand, if Andres only produces salads, he can do 35, and if he only prepares sandwiches, he can only prepare 7. Based on this information, answer the following questions: a. Who has an absolute advantage in producing salads? David b. Who has an absolute advantage in producing sandwiches? David c. What is Andres' opportunity cost of producing one salad? This is a numeric answer. 1/5 d. What is Andres' opportunity cost of producing one sandwich? This is a numeric answer. e. What is David's opportunity cost of producing one salad? This is a numeric answer. 3/4 f. What is David's opportunity cost of producing one sandwich? This is a numeric answer. g. Who has a comparative advantage in producing salads? David h. Who has a comparative advantage in producing sandwiches? Andres 5 4/3
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