opportunity costs t each tood tem for both Carolyn and Jen Carolyn, the opportunity cost of a pretzel is hot dog(s). Carolyn. the opportunity cost of a hot dog isO pretzels). Jen, the opportunity cost of a pretzel ishot dog(s) Jen, the opportunity cost of a hot dog ispretzel(s) pe an integer or decimal rounded to two decimal places as needed) Does anyone have a comparative advantage in either food? Why or why not? has a comparative advantage in pretzels, since has a comparative advantage in hot dogs, since Calculate the productivity of Carolyn and Jen for both goods rolyn's productivity in pretzels is pretzeljs) per hour rolyn's productivity in hot dogs is hot dog(s) per hour
opportunity costs t each tood tem for both Carolyn and Jen Carolyn, the opportunity cost of a pretzel is hot dog(s). Carolyn. the opportunity cost of a hot dog isO pretzels). Jen, the opportunity cost of a pretzel ishot dog(s) Jen, the opportunity cost of a hot dog ispretzel(s) pe an integer or decimal rounded to two decimal places as needed) Does anyone have a comparative advantage in either food? Why or why not? has a comparative advantage in pretzels, since has a comparative advantage in hot dogs, since Calculate the productivity of Carolyn and Jen for both goods rolyn's productivity in pretzels is pretzeljs) per hour rolyn's productivity in hot dogs is hot dog(s) per hour
Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth
Section: Chapter Questions
Problem 6SQP
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Transcribed Image Text:Carolyn and Jen each run a food cart that sells pretzels and hot dogs. Carolyn can produce and sell 790 pretzels or 410 hot dogs in an 8-hour shift. Jen lives in a different city and can only sell for a 6-hour shift, but in that time she can produce and sell 670 pretzels or 240 hot dogs. Complete parts a through e below.
a) Calculate the opportunity costs of each food item for both Carolyn and Jen.
For Carolyn, the opportunity cost of a pretzel is hot dog(s).
For Carolyn, the opportunity cost of a hot dog is pretzel(s).
For Jen, the opportunity cost of a pretzel is hot dog(s).
For Jen, the opportunity cost of a hot dog is pretzel(s).
(Type an integer or decimal rounded to two decimal places as needed.)
b) Does anyone have a comparative advantage in either food? Why or why not?
has a comparative advantage in pretzels, since
a comparative advantage in hot dogs, since
c) Calculate the productivity of Carolyn and Jen for both goods.
Carolyn's productivityi
pretzels is pretzel(s) per hour.
Carolyn's productivity in hot dogs is hot dog(s) per hour.
Jen's productivity in pretzels is
pretzel(s) per hour.
Jen's productivity in hot dogs is hot dog(s) per hour.
(Type an integer or decimal rounded to one decimal place as needed.)
d) Does anyone have an absolute advantage in the production of either good? Why or why not?
V has an absolute advantage in pretzels, since
V has an absolute advantage in hot dogs, since
e) Suppose Carolyn and Jen decide to merge, becoming one large vendor in Carolyn's town. How should they divide the cooking of the pretzels and hot dogs between them? Why?
since Carolyn has
and Jen has
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