Question content area bottom Part 1 Tom's opportunity cost of producing a racket is enter your response here balls. Part 2 Abby's opportunity cost of producing a racket is enter your response here balls. Part 3 In the production of balls, ______ and _____ has a comparative advantage. A. Tom has a lower opportunity cost than Abby; Tom B. Abby has a lower opportunity cost than Tom; Abby C. Tom has a lower opportunity cost than Abby; Abby D. Abby has a lower opportunity cost than Tom; Tom Part 4 In the production of rackets, _____ and _____ has a comparative advantage. A. Tom has a lower opportunity cost than Abby; Abby B. Abby has a lower opportunity cost than Tom; Abby C. Abby has a lower opportunity cost than Tom; Tom D. Tom has a lower opportunity cost than Abby; Tom
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The question as given omits those numbers, so first supply the maxima (for example: Tom — X balls or Y rackets; Abby — A balls or B rackets). Show more…
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In the production of balls, ______ and _____ has a comparative advantage. a. abby has a lower opportunity cost than tom, abby b. tom has a lower opportunity cost than abby, abby c. tom has a lower opportunity cost than abby, tom d. abby has a lower opportunity cost than tom, tom In the production of rackets, _____ and _____ has a comparative advantage. a. abby has a lower opportunity cost than tom, abby b. tom has lower opportunity cost than abby, tom c. tom has a lower opportunity cost than abby, abby d. abby has a lower opportunity cost than tom, tom
Oluwadamilola A.
Tom's opportunity cost of producing a racket is ____ balls Abby's opportunity cost of producing a racket is ____ balls a. In the production of balls, ______ and _____ has a comparative advantage. b. In the production of rackets, _____ and _____ has a comparative advantage.
Crystal W.
a. Define opportunity cost. b. Sarah's friends are trying to convince her to leave her summer job one month early, from which she earns $1000 per month, to vacation in Costa Rica. If she goes there, her out-of-pocket expenses would be $2600. What is Sarah's opportunity cost of going to Costa Rica? If the marginal benefit she gets from the vacation is equivalent to $3800, should she go? Explain. c. Now suppose that Sarah has already purchased the plane fare to Costa Rica, which is $700 of the $2600 trip cost. The fare is non-refundable and she can't use it for credit on another flight. Assuming everything else in part b is still the same, what is her opportunity cost of the trip in this case? If her MB is still $3800, what should she do? Explain. 2. The countries of Utopia and Greatland have the following production possibilities: Greatland lumber computers 40 100 Utopia lumber Computers 25 75 a. Which country has absolute advantage in lumber? In computers? b. Fill out the opportunity cost table below: Greatland Utopia 1 lumber 1 computer c. Which country has comparative advantage in lumber? In computers? d. Using separate diagrams, draw Greatland's PPF and Utopia's PPF below (put lumber on the vertical axis). Assume both countries completely specialize in the good for which they have comparative advantage. On your graphs, show how a trade of 20 lumber for 55 computers will make both countries better off (indicate final consumption points).
Akash M.
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