Who has a comparative advantage in making bread

Assignment Help Econometrics

Reference no: EM131301182

Two friends, Rachel and Joey, enjoy baking bread and making apple pies. Rachel takes 2 hours to bake a loaf of bread and 1 hour to make a pie. Joey takes 4 hours to bake a loaf of bread and 4 hours to make a pie.

a. What are Joey's and Rachel's opportunity costs of baking bread?

b. Who has the absolute advantage in making bread?

c. Who has a comparative advantage in making bread?

d. If Joey and Rachel decide to specialize in order to increase their joint production, what should Joey produce? What should Rachel produce?

e. The price of a loaf of bread can be expressed in terms of an apple pie. If Joey and Rachel are specializing in production and decide to trade with each other, what range of ratios of bread and apple pie would allow both parties to benefit from trade?

Reference no: EM131301182

Questions Cloud

What factors are most important for economic growth : What criteria would you use to determine which of two workers has a comparative advantage in performing a task?

Prepare an article about the ethical issues : Prepare an article about the Ethical issues :The issue in detail,The ethical principle in this article that has been violated,Diversity implications that are involved,A mitigation strategy for the ethical issue.

Analysis to leadership roles and responsibilities : How can you apply the conclusions of your assessment and analysis to leadership roles and responsibilities in your organization? Vallabhbhai Jhaverbhai Patel is my leader

When would you change your will : When would you change your will? How can your will be changed?- What is probate? Describe the probate process.

Who has a comparative advantage in making bread : Two friends, Rachel and Joey, enjoy baking bread and making apple pies. Rachel takes 2 hours to bake a loaf of bread and 1 hour to make a pie. Joey takes 4 hours to bake a loaf of bread and 4 hours to make a pie.

Calculate the value of your estate periodically : Why is it important to calculate the value of your estate periodically?- Beyond the will, what does estate planning involve?

Analyze the data in the scenario : As the RN monitoring this patient, what assessments will you perform for early recognition of potential problems? Identify a nursing diagnosis with related factors, and defining characteristics (if appropriate).

What is a standard family trust : What is an irrevocable living trust?- What is a standard family trust? Give an illustration.- How do gifts fit into estate planning?

Discuss the history-evolving nature of clinical psychology : Discuss the history and evolving nature of clinical psychology.Explain the role of research and statistics in clinical psychology.Discuss the differences between clinical psychology and other mental health professions, including social work, psychi..

User Account

All Pages