Person 1 can allocate her 8-hour a day between the production of two goods. A and B. Each hour devoted to Good B yields 2 units whereas each hour devoted to Good A produces 4 units (B) Person 2 can produce 3 units of Good B or 4 units of good A per hour i) who has the absolute advantage in the production of of Good B ? ii) Who has the absolute advantage in the production of Good A ? iii) Calculate the opportunity cost for Good B for 2 persons iv) Calculate the opportunity cost for Good A for 1 person
Person 1 can allocate her 8-hour a day between the production of two goods. A and B. Each hour devoted to Good B yields 2 units whereas each hour devoted to Good A produces 4 units (B) Person 2 can produce 3 units of Good B or 4 units of good A per hour i) who has the absolute advantage in the production of of Good B ? ii) Who has the absolute advantage in the production of Good A ? iii) Calculate the opportunity cost for Good B for 2 persons iv) Calculate the opportunity cost for Good A for 1 person
Chapter2: Production Possibilities Frontier Framework
Section: Chapter Questions
Problem 8WNG
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Person 1 can allocate her 8-hour a day between the production of two goods. A and B. Each hour devoted to Good B yields 2 units whereas each hour devoted to Good A produces 4 units
(B) Person 2 can produce 3 units of Good B or 4 units of good A per hour
i) who has the
ii) Who has the absolute advantage in the production of Good A ?
iii) Calculate the
iv) Calculate the opportunity cost for Good A for 1 person
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