EddieGuitars322824201612840Tubas012345678DaveGuitars2520151050Tubas0123453530252015105030252015105000212436485106Eddie and Dave both produce guitars and tubas. They produce a given amountof each per month as seen in the tables above. Given the productionpossibilities curves of each individual above, answer the following:Who has the comparative advantage in the production of tubas?Eddie, because his opportunity cost of producing a tuba is 0.75 guitars tubascompared to Dave's opportunity cost of producing a tuba guitar of0.25 guitarsDave, because his opportunity cost of producing a tubas is 5 guitarscompared to Eddie's opportunity cost of producing a tuba of 4 guitarsDave, because he is able to produce a lower number of tubas compared toEddieDave, because he is able to produce a lower number of guitars compared toEddieEddie, because his opportunity cost of producing a tuba is 4 guitarscompared to Dave's opportunity cost of producing a tuba of 5 guitarsEddie, because he is able to produce a greater number of tubas compared to

Given information Eddie and Dave both produce guitars and tubas. Eddie can produce either 32…

Answered: Who has the comparative advantage in…

Who has the comparative advantage in the production of tubas? Eddie, because his opportunity cost of producing a tuba is 0.75 g compared to Dave's opportunity cost of producing a tuba guitar

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 3CQQ

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Concept explainers

Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.

Question

Eddie
Guitars
32
28
24
20
16
12
8
4
0
Tubas
0
1
2
3
4
5
6
7
8
Dave
Guitars
25
20
15
10
5
0
Tubas
0
1
2
3
4
5
35
30
25
20
15
10
5
0
30
25
20
15
10
5
0
0
0
2
1
2
4
3
6
4
8
5
10
6
Eddie and Dave both produce guitars and tubas. They produce a given amount
of each per month as seen in the tables above. Given the production
possibilities curves of each individual above, answer the following:
Who has the comparative advantage in the production of tubas?
Eddie, because his opportunity cost of producing a tuba is 0.75 guitars tubas
compared to Dave's opportunity cost of producing a tuba guitar of
0.25 guitars
Dave, because his opportunity cost of producing a tubas is 5 guitars
compared to Eddie's opportunity cost of producing a tuba of 4 guitars
Dave, because he is able to produce a lower number of tubas compared to
Eddie
Dave, because he is able to produce a lower number of guitars compared to
Eddie
Eddie, because his opportunity cost of producing a tuba is 4 guitars
compared to Dave's opportunity cost of producing a tuba of 5 guitars
Eddie, because he is able to produce a greater number of tubas compared to

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