Mountain Mack and Big Lake Bob spend their time carving fishing lures and duck decoys. The table below shows their production possibilities schedules, which describe various combinations of fishing lures and duck decoys they each can carve efficiently in a week. Production Possibilities Schedules Mountain Mack Big Lake Bob Fishing Lures Duck Decoys Fishing Lures Duck Decoys e e 4 8 12 16 20 50 40 10 20 10 8 16 24 32 40 140 115 90 65 40 e a. If Mountain Mack splits his week evenly between carving fishing lures and duck decoys, what is the maximum number of fishing lures and duck decoys could he carve? 50 fishing lures and 40 duck decoys O 140 fishing lures and 20 duck decoys O 25 fishing lures and 20 duck decoys O 20 fishing lures and 25 duck decoys b. If Big Lake Bob splits his week evenly between carving fishing lures and duck decoys, what is the maximum number of fishing lures and duck decoys could he carve? 070 fishing lures and 10 duck decoys O 10 fishing lures and 70 duck decoys O 20 fishing lures and 140 duck decoys O 140 fishing lures and 20 duck decoys c. Combined, how many fishing lures and duck decoys could Mountain Mack and Big Lake Bob carve if each one split his week between the two products? 20 fishing lures and 140 duck decoys O 30 fishing lures and 95 duck decoys 140 fishing lures and 20 duck decoys O 95 fishing lures and 30 duck decoys d. Who has the comparative advantage in carving fishing lures? In carving duck decoys? Fishing lures: (Click to select) Duck decoys: (Click to select) e. If both Mountain Mack and Big Lake Bob choose to specialize in the product in which he has a comparative advantage, how many of each product could they produce together? O 140 fishing lures and 40 duck decoys O 50 fishing lures and 70 duck decoys O 70 fishing lures and 50 duck decoys 5

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

Problem 23P: HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow...