Question

III. The weekly productivity of two workers is as follow: Alex 30 Pants & 10 bikes and Joel 10 pants & 5 bikes. a. Which one has an absolute advantage in the production of pants? bikes? Pants bikes Absolute advantage in pants: Alex 30 10 Alex Joel 10 5 absolute advantage in bikes: Alex b. Which one has a comparative advantage in the production of pants? Bikes? (Alex)= 10/30=0.33 Alex in pants B/P (Joel) = 5/10=0.5 Bikes: P/B Joel = 30/10=3 Joel in bikes c. Assuming that both Alex and Joel spend the whole year producing pants and/or bikes, find and graph the resulting combination of goods each worker can produce in a year. P9.27 d. Suppose that a pair of pants is sold for $ 30.00 and a bike for $100.00, how should they allocate their resources and time in production (assuming comparative advantage). Find their joint total revenue for the year. Alex Should be producing pants while Joel produces the bikes.

          III.
The weekly productivity of two workers is as follow: Alex 30 Pants & 10 bikes and
Joel 10 pants & 5 bikes.
a. Which one has an absolute advantage in the production of pants? bikes?
Pants bikes Absolute advantage in pants:
Alex 30 10 Alex
Joel 10 5 absolute advantage in bikes:
Alex
b. Which one has a comparative advantage in the production of pants? Bikes?
(Alex)= 10/30=0.33 Alex in pants B/P
(Joel) = 5/10=0.5 Bikes: P/B
Joel = 30/10=3 Joel in bikes
c. Assuming that both Alex and Joel spend the whole year producing pants and/or
bikes, find and graph the resulting combination of goods each worker can produce
in a year.
P9.27
d. Suppose that a pair of pants is sold for $ 30.00 and a bike for $100.00, how should
they allocate their resources and time in production (assuming comparative
advantage). Find their joint total revenue for the year.
Alex Should be producing pants while Joel
produces the bikes.

III.
The weekly productivity of two workers is as follow: Alex 30 Pants 10 bikes and
Joel 10 pants 5 bikes.
a. Which one has an absolute advantage in the production of pants? bikes?
Pants bikes Absolute advantage in pants:
Alex 30 10 Alex
Joel 10 5 absolute advantage in bikes:
Alex
b. Which one has a comparative advantage in the production of pants? Bikes?
(Alex)= 10/30=0.33 Alex in pants B/P
(Joel) = 5/10=0.5 Bikes: P/B
Joel = 30/10=3 Joel in bikes
c. Assuming that both Alex and Joel spend the whole year producing pants and/or
bikes, find and graph the resulting combination of goods each worker can produce
in a year.
P9.27
d. Suppose that a pair of pants is sold for 30.00 and a bike for100.00, how should
they allocate their resources and time in production (assuming comparative
advantage). Find their joint total revenue for the year.
Alex Should be producing pants while Joel
produces the bikes.

Added by April H.

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