If you and your neighbor decide to specialize and trade, how many apples and oranges will you each produce? agrus Youc.os NeighoarA.300Let's Practice!E. Lo0 apples5ocronges= 2apple>> The o.C.ofdrange isThe o.C.oloappleroo Oronyes3pples.B.300 applesToo ofangesBapples30soor ang es20ts a and c, who has the absoluteadvantage in the production of apples? IneYou have an apple orchard and have recentlyorange D. Using paadded a small plot of land for oranges as well. Ina growing season you have the capacity toharvest 100 crates of apples, or 50 of oranges.Draw your Production Possibilities Frontier, withoranges on the x axis, assuming that theopportunity cost of producing oranges remainsconstant.A.oranges?Applesi Neighboor (30o7lo0)Again using parts a and c, who has the Orangesi NeighburЕ.comparative advantage in the production ofapples? In oranges?YouCloo>50)The opportunity.cost.of lorange SNeighbo ČņcYyYou discover a new, highly productive fertilizer F.for your orange trees. Illustrate the impact of thisdiscovery on your production capacity, using thesame graph as before. You don't need to labelany numbers here, just show how the graphchanges.Assume that before trading, you are producing 40crates of apples and 30 oranges. Your neighbor isproducing 240 crates of apples and 20 oranges.Label these points on your PPFS from parts a andВ.c.pincomparntiveMee opportunity cosd of lappleIf you and your neighbor decide to specíalize and advantagetrade, how many apples and oranges will youG.Your neighbor also grows oranges and apples. Ina season they are capable of harvesting 300crates of apples, or 100 of oranges. Draw theirPPF, with oranges on the x axis, again assumingthat the opportunity cost of producing orangesremains constant.C.a pple>How does this compare to total production beforetrade (part f)? SameН.ov anges: 50=30720Mare apples300>(2401 YO=280)1.50 orang300 applesPropose a trade you can both benefit from.Ovange>II.20 oranogeso appledYou: 30N: 20 Ar anges, 25apples rgain 1Dapples5oapples (gain l0 apples)]

Since you have specifically asked for subpart G, will give solution for that subpart onwards. A…

If you and your neighbor decide to specíalize and advant trade, how many apples and oranges will you each produce? "Y, u 50 oranges Neighbor 3 . How does this compare to total production before trade (part f)? Same oranges:50=3072 Mare aRele Propose a trade you can both benefit from. 30 DYgnge oapples (gain loapple 300>(24ot Y

If you and your neighbor decide to specíalize and advant trade, how many apples and oranges will you each produce? "Y, u 50 oranges Neighbor 3 . How does this compare to total production before trade (part f)? Same oranges:50=3072 Mare aRele Propose a trade you can both benefit from. 30 DYgnge oapples (gain loapple 300>(24ot Y

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 4SCQ: What are the similarities between a consumers budget constraint and societys production...

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