Use the graphs below to answer questions 7 through 10.PAMALEXCakes1O210y ?CakesLox-1X1010-X6PiesPies0010For Alex, the opportunity cost of 1 pie iscost of 1 pie iscake(s); for Pam, the opportunity7.cake(s)./2/2 12/3, 2b.12 21/2 1d.a.C.For Alex, the opportunity cost of 1 cake iscost of 1 cake is8.pie(s); for Pam, the opportunitypie(s).2/3;b.1½; 12/3; 2a.d.C.Alex has a comparative advantage in9.and Pam has a comparative advantage incakes; piespies eakesa.cakes; cakesC.b.pies, piesd.If Alex and Pam specialize according to comparative advantage, their combined outputwill be:10.9 cakes and 10 pies.19 cakes and 16 pies.a.10 cakes and 6 pies.15 cakes and 20 pies.C.b.d.Cex 21.Oy-ly10 21010 101l

Question
Asked Sep 11, 2019
11 views

I need help with questions 9 and 10. For question 9, since the x and y value are the same, I dont know how to identify in what type of production Pam has a comparative advantage in. For question 10, I do not understand how to calculate the combined output according to each person's specialization.

Use the graphs below to answer questions 7 through 10.
PAM
ALEX
Cakes
1O
2
10y ?
Cakes
Lox-1X
10
10
-X
6
Pies
Pies
0
0
10
For Alex, the opportunity cost of 1 pie is
cost of 1 pie is
cake(s); for Pam, the opportunity
7.
cake(s)./
2/2 1
2/3, 2
b.
12 2
1/2 1
d.
a.
C.
For Alex, the opportunity cost of 1 cake is
cost of 1 cake is
8.
pie(s); for Pam, the opportunity
pie(s).
2/3;
b.
1½; 1
2/3; 2
a.
d.
C.
Alex has a comparative advantage in
9.
and Pam has a comparative advantage in
cakes; pies
pies eakes
a.
cakes; cakes
C.
b.
pies, pies
d.
If Alex and Pam specialize according to comparative advantage, their combined output
will be:
10.
9 cakes and 10 pies.
19 cakes and 16 pies.
a.
10 cakes and 6 pies.
15 cakes and 20 pies.
C.
b.
d.
Cex 2
1.
Oy-ly
10 210
10 10
1l
help_outline

Image Transcriptionclose

Use the graphs below to answer questions 7 through 10. PAM ALEX Cakes 1O 2 10y ? Cakes Lox-1X 10 10 -X 6 Pies Pies 0 0 10 For Alex, the opportunity cost of 1 pie is cost of 1 pie is cake(s); for Pam, the opportunity 7. cake(s)./ 2/2 1 2/3, 2 b. 12 2 1/2 1 d. a. C. For Alex, the opportunity cost of 1 cake is cost of 1 cake is 8. pie(s); for Pam, the opportunity pie(s). 2/3; b. 1½; 1 2/3; 2 a. d. C. Alex has a comparative advantage in 9. and Pam has a comparative advantage in cakes; pies pies eakes a. cakes; cakes C. b. pies, pies d. If Alex and Pam specialize according to comparative advantage, their combined output will be: 10. 9 cakes and 10 pies. 19 cakes and 16 pies. a. 10 cakes and 6 pies. 15 cakes and 20 pies. C. b. d. Cex 2 1. Oy-ly 10 210 10 10 1l

fullscreen
check_circle

Expert Answer

star
star
star
star
star
1 Rating
Step 1

Production possibility of Alex and Pam:

help_outline

Image Transcriptionclose

Cakes Pies Alex 6 Pam 10 10

fullscreen
Step 2

To find Comparative advantage we must know out of both Alex or Pam who is more efficient in producing cakes and who is more efficient in producing pies.

The table below shows the opportunity cost of both Alex and Pam In producing cakes and pies:

help_outline

Image Transcriptionclose

1 Pie 1 Cake 9/6 cakes 1.5 cakes Alex 6/9 pies 0.67 pies 10/10 pies 10/10 cakes Pam 1 pies 1 cakes

fullscreen
Step 3

Therefore, the table can be explained as following:

Alex has lower opportunity cost in producing cakes as he has to sacrifice just 0.67 pie while Pam has to sacrifice 1 pie in producing 1 cake. Therefore, Alex specializes i...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Economics

Related Economics Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: What is “Compensating Variation”? What is “Consumer’s Surplus”? What is “Equivalent Variation”? What...

A: Utility:The utility is the power or ability of the goods and services that satisfy the consumers wan...

question_answer

Q: If a natural disaster occurs in the US, this is an example of a A) stone cold shock B) negative aggr...

A: A natural disaster is very likely to destroy resources like capital and human resources.

question_answer

Q: The states have the right to regulate and license real estate agents. Why should that be?

A: Real Estate:The term real estate refers to physical property, land, and buildings. Basically, there ...

question_answer

Q: a1. You learn on the business channel that inflation was about 0.8% last month.  Assume this rate is...

A: Since you have not mentioned which question have to answer. So, I am answering question “a1”.

question_answer

Q: Match the terms with their corresponding descriptions firms' costs associated with changing their pr...

A: Macroeconomics:The study of economics as a whole is termed as macroeconomics for example study of na...

question_answer

Q: Hi can I get this queshtion check I think the answer is C but I'm quite unsure.

A: Negative Shocks: In economics, the negative shocks refer to the sudden spike in prices and a decreas...

question_answer

Q: During a year of operation, a firm collects $450,000 in revenue and spends $100,000 on labor expense...

A: It is given that,Firms’ Revenue = $450, 000Firms’ Explicit Cost (Expense on labor, raw material, ren...

question_answer

Q: if the governement would like to induce a consumer to consumer a specific level of some good. which ...

A: Figure 1 illustrates the impact of subsidy to consumer and the money value of the subsidy.

question_answer

Q: Bakers are much    likely to supply pastries to the market if property rights are not enforced.   ...

A: In economics, the term property right is one of the theoretically social-enforced concepts where the...