Question

Pounds of beef 350 Figure 3 Chris Pounds of beef Isabella 350 300 300 250 250 200 200 150 150 100 100 50 50 0 100 200 300 400 0 100 200 300 400 Avocados Avocados Refer to Figure 3 which shows Chris's and Isabella's production possibility frontiers for pounds of beef and avocados. Assume that each producer has the same amount of resources/labor hours available for production. Chris has absolute advantage in the production of neither beef nor avocados and Isabella has absolute advantage in the production of avocados Chris's opportunity cost of 1 avocado is 4/7 pounds of beef and Isabella's opportunity cost of 1 avocado is 8/7 pounds of beef Chris's opportunity cost of 1 pound of beef is 4/7 avocados and Isabella's opportunity cost of 1 pound of beef is [Select] Chris has comparative advantage in the production of [Select] and Isabella has comparative advantage in the production of [Select] To maximize production and benefits of trade, Chris should specialize in the production of [Select] and Isabella should specialize in the production of [Select]

          Pounds
of beef
350
Figure 3
Chris
Pounds
of beef
Isabella
350
300
300
250
250
200
200
150
150
100
100
50
50
0 100 200 300 400
0 100 200 300 400
Avocados
Avocados
Refer to Figure 3 which shows Chris's and Isabella's production
possibility frontiers for pounds of beef and avocados. Assume that each
producer has the same amount of resources/labor hours available for
production.
Chris has absolute advantage in the production of
neither beef nor avocados
and Isabella has absolute advantage in
the production of avocados
Chris's opportunity cost of 1 avocado is 4/7 pounds of beef
and Isabella's opportunity cost of 1 avocado is
8/7 pounds of beef
Chris's opportunity cost of 1 pound of beef is
4/7 avocados
and Isabella's opportunity cost of 1
pound of beef is [Select]
Chris has comparative advantage in the production of
[Select]
and Isabella has comparative advantage
in the production of [Select]
To maximize production and benefits of trade, Chris should specialize in
the production of [Select]
and Isabella should
specialize in the production of [Select]

Show more…

Pounds
of beef
350
Figure 3
Chris
Pounds
of beef
Isabella
350
300
300
250
250
200
200
150
150
100
100
50
50
0 100 200 300 400
0 100 200 300 400
Avocados
Avocados
Refer to Figure 3 which shows Chris's and Isabella's production
possibility frontiers for pounds of beef and avocados. Assume that each
producer has the same amount of resources/labor hours available for
production.
Chris has absolute advantage in the production of
neither beef nor avocados
and Isabella has absolute advantage in
the production of avocados
Chris's opportunity cost of 1 avocado is 4/7 pounds of beef
and Isabella's opportunity cost of 1 avocado is
8/7 pounds of beef
Chris's opportunity cost of 1 pound of beef is
4/7 avocados
and Isabella's opportunity cost of 1
pound of beef is [Select]
Chris has comparative advantage in the production of
[Select]
and Isabella has comparative advantage
in the production of [Select]
To maximize production and benefits of trade, Chris should specialize in
the production of [Select]
and Isabella should
specialize in the production of [Select]

Added by Ryan C.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Crystal Wang

09/18/2023

Step 1

His opportunity cost of 1 avocado is 350/200 = 7/4 pounds of beef. Show more…

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Figure 3 Pounds of beef 350 Chris Pounds of beef Isabella 350 300 300 250 250 200 200 150 150 100 50 0 100 200 300 400 0 100 200 300 400 Avocados Avocados 100 50 Refer to Figure 3 which shows Chris's and Isabella's production possibility frontiers for pounds of beef and avocados. Assume that each producer has the same amount of resources/labor hours available for production. Chris has absolute advantage in the production of neither beef nor avocados the production of avocados and Isabella has absolute advantage in ◇ Chris's opportunity cost of 1 avocado is 4/7 pounds of beef and Isabella's opportunity cost of 1 avocado is ◇ 8/7 pounds of beef ◇ Chris's opportunity cost of 1 pound of beef is 4/7 avocados and Isabella's opportunity cost of 1 pound of beef is [Select] Chris has comparative advantage in the production of [Select] and Isabella has comparative advantage in the production of [Select] C To maximize production and benefits of trade, Chris should specialize in the production of [Select] specialize in the production of [Select] and Isabella should

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Transcript

00:01 The graph represents various combinations of ham and cheese that the nation of bonobo could produce in a given month.

00:11 If the production possibilities frontier is for 240 hours of production, then how long does it take bonobo to make 1 pound of cheese? if bonobo uses all of that time to make cheese, bonobo could make a total of 320 pounds of cheese assuming bonobo does not make any ham.

00:42 That is how many pounds of cheese bonobo could make in the 240 hours that this graph represents.

00:51 How long would it take bonobo to make 1 pound of cheese? let's flip this fraction over.

01:15 We have 240 hours of production for 320 pounds of cheese.

01:21 Let's divide this out.

01:23 240 divided by 320.

01:26 That gives you 0 .75 hours per 1 pound of cheese.

01:32 It takes 3 fourths of an hour.

01:35 The answer is going to be b.

01:40 If the production possibilities frontier is for 240 hours of production, which of the following combination could they produce in 240 hours? in this case, we just need to find a point that is on the production possibilities frontier.

01:59 For 225 pounds of ham and 140 pounds of cheese, if we look on the graph, it does not look like that is going to be a point on there.

02:14 Then we have 280 and 100 pounds of cheese.

02:19 That also does not look like that reaches the curve.

02:22 We have 355 and 80 pounds.

02:27 That looks like that is possible.

02:34 Then we have 330 pounds and 60.

02:42 To get an accurate answer, it is probably best to calculate the opportunity cost between cheese and ham.

02:50 We could either have 320 cheese or we could have 400 ham.

03:12 We trade 5 ham for 4 cheese.

03:23 Looking at the last two, if i produce 80 pounds of cheese, i started at 320.

03:39 Subtract 80 and we gave up 240 pounds of cheese.

03:51 Then we need to find the opportunity cost for 1 cheese.

04:11 In this case, we want the opportunity cost for 1 ham.

04:15 Then we do 4 divided by 5.

04:17 That gives you 0 .8 cheese for 1 ham.

04:22 To get 1 ham, we gave up 0 .8 cheese.

04:25 We gave up a total of 240 pounds of cheese.

04:31 Therefore, we should have gotten 300 ham from it.

04:35 We have 240 pounds of cheese.

04:40 0 .8 cheese gives us 1 ham.

04:45 We get 300 ham.

04:51 We could take a look...

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