contestada

Assume that Brian and Tabitha can switch between producing apples and producing pork at a constant rate.

Mintues needed to make 1
Bushel of apple Pound of perk
Brain 10 12
Tabitha 6 10

Assume that Brian and Tabitha each has 120 minutes available. If each person spends all his or her time producing the good in which he or she has a comparative advantage, then total production is:________

a. 20 bushels of apples and 10 pounds of pork
b. 12 bushels of apples and 10 pounds of pork
c. 12 bushels of apples and 12 pounds of pork
d. 20 bushels of apples and 12 pounds of pork

Respuesta :

Parrain

Answer: c. 12 bushels of apples and 12 pounds of pork

Explanation:

Brian Opportunity costs

Bushel of Apple = 12/10 = 1.2 pounds of pork

Pounds of Pork = 10/12 = 0.83 bushels of apple

Tabitha opportunity cost

Bushel of apple = 10 / 6 = 1.67 pounds of pork

Pound of pork = 6/10 = 0.6 bushels of apple.

Brian has comparative advantage in Apple production

Tabitha has comparative advantage in Pork production

Brian focuses on apple and makes 1 bushel every 10 minutes. In 120 minutes he will make:

= 120/10

= 12 bushels of apples

Tabitha makes 1 pound of pork every 10 minutes as well:

= 120/10

= 12 pounds of pork

Otras preguntas