Essentials of Economics (MindTap Course List)
8th Edition
ISBN: 9781337091992
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 3, Problem 1CQQ
To determine
The
Expert Solution & Answer
Answer to Problem 1CQQ
Option ‘d’ is the correct answer.
Explanation of Solution
Option (d)
Tyler has the absolute advantage in washing, since he can wash 3 cars per hour, while Mateo can only wash 2 cars per hour. None has the absolute advantage in mowing as both can only mow 1 lawn in an hour’s time. So option ‘d’ is correct.
Option (a)
Mateo can only wash 2 cars per hours, whereas Tyler can wash 3 cars in the same amount of time. So Mateo does not have the absolute advantage in washing cars. Also, both do not have the advantage over the other in mowing the lawn. So option ‘a’ is incorrect.
Option (b)
Tyler has an absolute advantage in washing, since he can wash 3 cars per hour, while Mateo can only wash 2 cars per hour but both do not have the advantage over the other in mowing the lawn. So option ‘b’ is incorrect.
Option (c)
None has the absolute advantage in mowing as both can only mow 1 lawn in an hour’s time but Tyler has the absolute advantage in washing, since he can wash 3 cars per hour, while Mateo can only wash 2 cars per hour. So option ‘c’ is incorrect.
Economics Concept Introduction
Concept Introduction:
Absolute advantage: It is the ability to produce a good using fewer inputs than another producer does.
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Students have asked these similar questions
Sue
Tom
Good A
10
4
Select one:
Good B
15
5
As shown in the table above, Sue and Tom each can produce two different types of goods.
For Sue, if she only produces Good A, then she can produce 10 units of Good A per day. If
she only produces Good B, then she can produce 15 units of Good B per day.
For Tom, if he only produces Good A, then she can produce 4 units of Good A per day. If she
only produces Good B, then she can produce 5 units of Good B per day.
Which of the following statement is correct about comparative advantage?
O a. Tom has a comparative advantage over Sue in the production of Good A. Sue has a
comparative advantage over Tom in the production of Good B
O b.
Tom has a comparative advantage over Sue in both tasks
O c.
Sue has a comparative advantage over Tom in both tasks
O d. Sue has a comparative advantage over Tom in the production of Good A. Tom has a
comparative advantage over Sue in the production of Good B
Macmillan Learn
Suppose that Ned can produce either potato chips or computer chips. If he only produces potato chips he can produce 50 in a
day. If he only produces computer chips, he can produce 25 in a day. Drag the endpoints of the line to plot his production
possibilities frontier (PPF) on the graph.
Potato Chips
50
45
40
35
30
25
20
15
10
Incorrect
5
O
0
5
10
15 20 25 30
Computer Chips
35
40
Ned's PPP
45 50
What is the opportunity cost of potato chip production in
terms of computer chips?
4/3
0 0 0
1/2
50
25
2
3/4
Farmer Jones and Farmer Smith graze their cattle on the same field. If there are 20 cows grazing in the field each cow produces $4000 of milk. If there are more cows in the field, then each cow produces can eat less grass and the milk production falls. With 30 cows on the field each produces $3000 of milk, with 40 cows each produces $2000 of milk . Cows cost $1000 a piece. Assume that Farmer Jones and farmer Smith can buy either 10 cows or 20 cows, find out the Dominant Strategy of Farmer Jones and express the same in formal language. I want to see all the steps.
Chapter 3 Solutions
Essentials of Economics (MindTap Course List)
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