Tom and Abby produce rackets and balls.The graphs show their productionpossibilities.Tom uses all his resources and produces2 rackets and 20 balls an hour. Abby usesall her resources and produces 2 racketsand 40 balls an hour.40-30-20-10-0+080-60-40-20-Balls (per hour)0+Tom's PPF1 2 3 4Rackets (per hour)Balls (per hour)Abby's PPF3 4 512Rackets (per hour)5If Tom and Abby specialize and then trade balls and rackets at 15 balls per 1 racket,A. Tom gains 2 rackets while Abby gains 40 balls an hourB. Tom gains 10 balls while Abby gains 1 racket and 15 balls an hourC. Tom gains 1 racket and 15 balls while Abby gains 10 balls an hourD. Tom gains 10 balls and Abby gains 10 balls an hourO E. together they gain 80 balls and 4 rackets an houroN

In the context of trade, specialization means concentrating on generating goods or services where…

If Tom and Abby specialize and then trade balls and rackets at 15 balls per 1 racket, A. Tom gains 2 rackets while Abby gains 40 balls an hour B. Tom gains 10 balls while Abby gains 1 racket and 15 balls an hour C. Tom gains 1 racket and 15 balls while Abby gains 10 balls an hour D. Tom gains 10 balls and Abby gains 10 balls an hour O E. together they gain 80 balls and 4 rackets an hour

If Tom and Abby specialize and then trade balls and rackets at 15 balls per 1 racket, A. Tom gains 2 rackets while Abby gains 40 balls an hour B. Tom gains 10 balls while Abby gains 1 racket and 15 balls an hour C. Tom gains 1 racket and 15 balls while Abby gains 10 balls an hour D. Tom gains 10 balls and Abby gains 10 balls an hour O E. together they gain 80 balls and 4 rackets an hour

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 6PA

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