Mana and Shayla produce pickles and cheese Mana's producton functon is Qp 425- S0c Shayla's production tuncton s Op 406 - 70c These two people are cunenty not radng Maa is curenty producing and consumng 190 pickles and 47 cheeses Shayla is cumendy producing and consuming 196 pckles and 30 heeses advantage The ters of rade are 107 pickles or 3e What are the gains om ade or Shayla i of PICKLES

Microeconomics: Principles & Policy
14th Edition
ISBN:9781337794992
Author:William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:William J. Baumol, Alan S. Blinder, John L. Solow
Chapter3: The Fundamental Economic Problem: Scarcity And Choice
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Mania and Shayla produce pickles and cheese.
Maria's production hunction is Op= 425 - S0c
Shayla's production function is Op 406 - 70c
These two people are currenty not trading Mana is currently producing and consumng 190 pickles and 47 theeses. Shayla is currently produoing and consuming 196 pickles and 30 cheeses
Then these two people specialze and trade based on comparative advantage The terms of trade are 107 pickles hir 3s cheeses What are the gains hom trade tor Shayla in terms of PICKLES?
Transcribed Image Text:Mania and Shayla produce pickles and cheese. Maria's production hunction is Op= 425 - S0c Shayla's production function is Op 406 - 70c These two people are currenty not trading Mana is currently producing and consumng 190 pickles and 47 theeses. Shayla is currently produoing and consuming 196 pickles and 30 cheeses Then these two people specialze and trade based on comparative advantage The terms of trade are 107 pickles hir 3s cheeses What are the gains hom trade tor Shayla in terms of PICKLES?
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