Person 1 can allocate her 8-hour 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 Person 2can produce 3 units of Goods B or 4 units of Good A per hour Who have the absolute advantage in the production of Good B Who have the absolute advantage in the production of Goods A

Q: Person 1 can allocate her 8-hour day between the production of two goods: A and B. Each hour devoted…

A: Persons 1 and Person 2 both have 8 hours a day each Both produce two goods, i.e., A and B Person 1…

Q: An economy produces two goods ,X and Y .lt uses two means of production, labour and capital. A unit…

A: we will be answering the first 3 sub parts of the question as particular sub part is not mentioned.…

Q: Two countries, Marland and Teckana, can produce either clothing or food using all their available…

A: Since you have asked multiple sub-parts we would answer the first three for you. To get the answers…

Q: Assume now that the sacrifice ratio is greater than 1, show what will happen to the shape of the…

A: (1) Suppose that Two goods - Shoes and computer Diminishing marginal return The opportunity cost of…

Q: Exhibit 2-4: Firm X's Points of Production on Its PPF Points A C D Capital Goods (K) 50.00 45.00…

A: "Opportunity cost refers to the benefit that is forgone by choosing one alternative instead of the…

Q: Answer the following questions: (i)- Refer to Exhibit 2-3. For Maya, the opportunity cost of…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: In a single day, Maxistan can produce 8 cheesecakes or 10 prime ribs. In a single day, Elistan can…

A: Here, it is given that Maxistan and Elistan produce two goods that are cheesecakes and prime ribs,…

Q: Suppose Carmina and Allen both produce two products - wallets and shoes made out of fine shell…

A: Absolute advantage: When producing a commodity the individual or country will produce the output at…

Q: Explain the main assumption behind a concave production possibilities frontier

A: The Production Possibility Frontier (PPF) is concave due to the increasing opportunity cost due to…

Q: Consider an economy with three people: George, Jerry, and Elaine. Each of them may spend their day…

A: Economics as a subject deals with the allocation of scarce resources among humans with unlimited…

Q: Which of the following statements is TRUE?

A:

Q: Tina can produce any of the following combinations of goods X and Y: (a)100X and 0Y; (b) 50X and…

A: Tina can produce: This means for Tina:

Q: Suppose Gus has a pineapple that he would get $3 in enjoyment from consuming and suppose Sean has no…

A: Gains from trade generally measured as the sum of the consumer’s and the producer’s surplus which…

Q: Consider the case of good C in Country D. Domestic producers of good C sell that good in the…

A: Only question 1 will be answered.

Q: You are now asked to consider a world with two people, Poppy and David. David is a farmer. Poppy…

A: We know,  David is a farmer Poppy owns the land on which David farms and does not produce any output…

Q: Explain The theory of external economies, Fixtemnal conony and intermational trade

A: External Economies are all those benefits which increases over a period of time to all the firms…

Q: Home has 1,200 units of labor available. It can produce two goods, apples and bananas. The unit…

A: Microeconomics is that the study of people's and enterprises' choices concerning resource allocation…

Q: Person 1 can allocate her 8-hour day between the production of two goods A and B. Each hour devoted…

A: Person 1 can produce two goods, i.e., A and B Person 1 can produce 4 units of good A per hour Person…

Q: Economics is a branch of social science that deals with the efficient allocation of scarced…

A: Economics is the study of individuals and all the economic agents about how they allocate the scarce…

Q: the heckler-ohlin analysis, a country imports the good that uses intensively the countries…

A: The Heckscher–Ohlin theorem is one of the four critical theorems of the Heckscher–Ohlin model,…

Q: Suppose that Country A can produce 6060 bags of sugar or 3030 bags of flour per worker hour. Country…

A: Answer: Given, Country Bags of sugar per hour Bags of flour per hour A 60 30 B 40 10 Let…

Q: An economy with many consumers (Amy, Hao, ...), many producers, two goods (A and B) and two inputs…

A: General equilibrium examines the economy overall, instead of dissecting single business sectors like…

Q: Adam Smith’s concept of the invisible hand, an efficient overall allocation of resources is likely…

A: Adam Smith’s concept of the invisible hand, an efficient overall allocation of resources is likely…

Q: Consider Robinson Crusoe who lives alone on the island. He can produce two good eggs (good X) and…

A: A production–possibility frontier (PPF) is a graphical representation of all possible output options…

Q: The production possibility frontier for X and Y consists of all the efficient allocations in the…

A: Edgeworth diagram is utilized to show the different dissemination of assets. It…

Q: Suppose there are two countries, the U.S. and Mexico, each producing two goods, computers (C) and…

A: U.S can produce computer using 1 laborMexico can produce computer using 8 laborsThus, it implies U.S…

Q: Person 1 can allocate her 8 hour day between the production of two goods: A and B. Each hour devoted…

A: Opportunity cost Opportunity cost is the cost of next best alternative foregone. In other words it…

Q: person 1 can allocate her 8 hour day between the production of two goods: A and B. Each hour devoted…

A: When talking about production ability, it provides information about how much goods are be generated…

Q: Person 1 can allocate her 8-hour day between the production of two goods: A and B. Each hour devoted…

A: Person 1 and Person 2 both have 8 hours a day each Both produce two goods, i.e., A and B Person 1…

Q: Graph A Graph B Graph C Graph D Which of the above 4 graphs best represents the change in the PPF if…

A: When a government places tax on the firms, it will increase the cost of production because firm has…

Q: Suppose a nation has a total of 12 units of labor, which can be used to produce either guns or…

A: The problem of resource allocation is one of the central problem of economics. as resources are…

Q: QUESTION 24 The following is the production possibilities frontier for Jim and Pam Jim Butter Pam…

A: In the world economy, when two countries make a trade on the basis of their specialization and…

Q: Evidence accumulates that the use of chemical fertilizers, which increases agricultural production…

A: A. The production possibility curve indicates different combinations of two goods that can be…

Q: Evidence accumulates that the use of chemical fertilizers, which increases agricultural production…

A: A production possibilities frontier is the locus of all maximum combinations of two goods or two…

Q: Suppose goods X and Y are produced along a production possibilities frontier X² + 4Y² = 500 and they…

A: Since the good X and good Y are perfect substitute. The marginal rate of substitution for perfect…

Q: 2. Blanco can produce any of the following combinations of goods X and Y: (a) 100 X and 0 Y. (b) 50…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Person 1 can allocate her 8-hour day between the production of two goods: A and B. Each hour devoted…

A: Here, the production ability or capability of person 1 is given as, he can allocate his 8 hours in…

Q: An economy with many consumers (Amy, Hao, ...), many producers, two goods (A and B) and two inputs…

A: The economy in question is competitive. Both the producers/sellers and the buyers/consumers play a…

Q: Define "Free Good" in a general equilibrium framework. Explain whether the goods are free goods in…

A: General Equilibrium is defined as a theory which analyzes the economy as a whole, instead of…

Q: Person 1 can allocate her 8-hour day between the production of two goods.A and B .Each hour devoted…

A: Production possibility frontier Production possibility frontier (PPF) is the curve which shows all…

Q: What is the correct formula for calculating opportunity cost of good Y if we are producing goods X…

A: Opportunity cost: - opportunity cost is a forgone benefit that we could have earned by applying all…