PRINCIPLES OF MICROECONOMICS (LL)W/ACC.
7th Edition
ISBN: 9781264198733
Author: Frank
Publisher: MCG
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Chapter 2, Problem 2P
To determine
The
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Joel can prepare 8 meals or wash 24 shirts in a day, Patricia can prepare 6 meals or wash 12 shirts in a day . What is Joel's opportunity cost washing one shirt?
Jake and Jill spend their time picking apples and strawberries. The quantities they can pick in an hour are shown in the table below.
Quantity Picked in One Hour
Pounds of Apples Pounds of Strawberries
Jake
8
4
Jill
10
10
Suppose Jake specializes in picking apples, and Jill specializes in picking strawberries. If Jake and Jill then trade 3 apples for 2
strawberries, Jake will end up consuming
Suppose Jake specializes in picking apples, and Jill specializes in picking strawberries. If Jake and Jill work for one hour, then trade 3
apples for 2 strawberries, Jake will end up consuming
apples and
strawberries.
Consider a simple exchange economy with two people: Bob and Jake. Bob and Jake both have 10 hours of time available. They can use their time to do one of 2 things: make pancakes or make hamburgers. Bob can make 2 hamburgers in an hour or 1 pancake in an hour. Jake can make 3 pancakes in an hour and 2 hamburgers in an hour. Use this information to answer the following question:
Find the opportunity cost for hamburgers and pancakes for Bob and Jake.
Chapter 2 Solutions
PRINCIPLES OF MICROECONOMICS (LL)W/ACC.
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