Calculate the opportunity costs of activities for activities

Assignment Help Microeconomics

Reference no: EM133659886

Problem

Snoopy and Woodstock both need to have some letters typed and some carpets vacuumed. The following table describes how much each of them can accomplish in one hour if that hour is spent either typing or vacuuming:

	Letters Typed in 1 Hour:	Rooms vacuumed in 1 Hour:
Woodstock:	4 letters	1 rooms
Snoopy:	8 letters	6 rooms

I. Calculate the opportunity costs of both activities for both Woodstock and Snoopy in terms of what they give up for a unit of each task (i.e., calculate how many rooms each of them would give up by using their time to type a letter rather than use that time vacuuming and vice versa).

II. In the context of the numbers from part (a) write a short essay on the concept of comparative advantage and explain how and why comparative advantage means both Snoopy and Woodstock could be made better off by trading tasks, even though Snoopy is clearly better at both tasks in the sense that it takes him less time than it takes Woodstock to perform either task.

Reference no: EM133659886

Questions Cloud

Explain to the court the applicable statute : In the Motion, explain to the court the applicable statute or case law that is the basis for the Motion.

What effect might this have on the radicalization problem : Imagine if YouTube and Facebook were government-funded public utilities. What effect might this have on radicalization problem that Zeynep Tufekci describes?

Which policies would move the market from market equilibrium : Which policies would move the market from the market equilibrium to the socially optimal equilibrium?

How many nash equilibria does the game have : Employee shirk don't shirk Firm monitor $40, $0 $150, $0 don't monitor $40, $30 $250, $30 How many Nash equilibria does this game have?

Calculate the opportunity costs of activities for activities : Calculate the opportunity costs of both activities for both Woodstock and Snoopy in terms of what they give up for a unit of each task.

What is the average annual cost savings expected per motor : Ignore installation costs (same for both models). What is the average annual cost savings expected per motor if go with the high energy motors?

Which can be consumed at any time during the two fasting day : How to revise this words This method allows for the consumption of up to 500 calories per day, which can be consumed at any time during the two fasting days.

How much revenue will firm make if sells sports-movie bundle : How much revenue will the firm make if sells a sports-movie bundle at $150, a sports-only package at $80 and a movie-only package at $60?

Should elektronix invest in the technology or not : Suppose that as a result of a research breakthough, Elektronix now has the chance. Should Elektronix invest in the technology or not? Justify your answer.

User Account

All Pages