Which person has a absolute advantage in both activities

Reference no: EM13222518

Suppose two people, Mary and John each live in an isolated region. They each have the same resources availabe and they grow corn and raise pigs. Mary devotes all her resources to growing corn, which she raises 200 pounds of corn per year. Which she also raises pigs 50 pigs per year. John devotes all his resources to growing corn which he raises 80 pounds of corn per year. John also raises pigs, 40 pigs per year. What is Mary's opportunity cost of producing corn? What is Mary's opportunity cost of producing pigs? What is John's opportunity cost of producing corn? What is John's opportunity cost of producing pigs? Which person has a absolute advantage in both activities? Which person has comparative advantage in corn? Which person has compartative advantage in pigs? Suppose that they are thinking of specializing completely in the area in which they have a compartive advantage, and then trading at a rate of 2.5 pounds of corn for 1 pig, would they each be better off?

Reference no: EM13222518

Questions Cloud

Explain what is the heat of combustion per gram of octane : A 1.800 g sample of octane, C8H18, was burned in a bomb calorimeter whose total heat capacity is 11.66 kJ/°C. The temperature of the calorimeter plus contents increased from 20.01°C to 29.99°C. What is the heat of combustion per gram of octane?

What is standard deviation of demand during replenishment : What is the standard deviation of demand during replenishment of blue diamond if the standard deviations of demand per period and lead time are 1.2 and 1.5 respectively.

What would be the contribution to us gnp and gdp : Save U More, a grocery in Iowa, purchased 2000 lbs. apples from an Iowan farmer at $0.4 per pound. The grocery store sold 1500 lbs. of the apples as fresh apples at $0.9 per lb., used the rest (500 lbs.) to make 200 gallons of apple cider, and sol..

Summarize the companys code of conduct : Identify the types of market systems and types of legal systems that exist in the countries where the corporation operates. What effect do these have on the company's operations?

Which person has a absolute advantage in both activities : Suppose two people, Mary and John each live in an isolated region. They each have the same resources availabe and they grow corn and raise pigs. Mary devotes all her resources to growing corn, which she raises 200 pounds of corn per year.

Define the specific heat of toluene : The specific heat of toluene, C7H8, is 1.13 J/g K. How many joules of heat are needed to raise the temperature of 50.0 g of toluene from 12.0°C to 30°C?

What is involved in the approach for crashing projects : Define project crashing. What is involved in the approach for crashing projects? Identify three specific ways to crash a project.

Recalculate the values of the four variables listed : A firm currently uses 50,000 workers to produce 200,000 units of output per day. The daily wage per worker is $80, and the price of the firm's output is $25. The cot of other variable inputs is $400,000 per day. Assume that total fixed cost equals..

What is the objective of critical path analysis : What is the objective of critical path analysis? Explain why the critical path is the longest, not the shortest, path through a network.

User Account

All Pages