Combination Cinnamon metric tons (X axis) Nutmeg metric tons (Y axis) A 7,000 0 B 6,000 7,000 C 4,500 11,000 D 2,500 14,000 E 0 16,000 What is the opportunity cost (amount & item) of the first 7,000 tons of nutmeg produced?  ______________________ What is the opportunity cost (amount & item) of increasing production from 7,000 tons of nutmeg  to 11,000 tons of nutmeg ?  _____

Please show solution. Thank you!

Table 2-12 One Canoe One Sailboat Guatemala Honduras 10 hours 15 hours 60 hours 75 hours Table 2-12 shows the number of labor hours required to produce a canoe and a sailboat in Guatemala and Honduras. Refer to Table 2-12. What is Honduras's opportunity cost of producing one canoe? O 1/5 of a sailboat 1.5 sailboats 5 sailboats 6 sailboats

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15. Assuming Portugal has 180 man-hours (mhrs) of labor resource available for production, and labor is the only resource, the per unit resource cost of cloth in Portugal is ____ mhrs/yard. (Please do NOT reduce fractions to decimals.)

(1) Specialization increases productivity which results in a De creasing revenue increasing b с d. asing marginal retums increasing opportunity increasing costs marginal output.

What is the opportunity cost (amount & item) of increasing production from 6,000 tons of cinnamon  to 7,000 tons of cinnamon ?  _________________

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Figure 3: Two Production Possibilities Frontiers Britain United States 100 30 90 200 Assume the world consists hypothetically of only two countries that can produce only two products, in the same period, with the same fixed amount of resources, with the same highest technologies available worldwide, and with the simplified assumption of producing "along" a linear production possibility frontier (PPF). Figure 3 provides the production possibilities frontiers between Textiles (T) and Soybeans (S) in the United States (A) and Britain (B). Referring to Figure 3, which of the following is true according to David Ricardo's Comparative Advantage Theory? Only the United States can benefit from engaging in free international trade with Britain. Neither Britain nor the United States can benefit from engaging in free international trade. Both Britain and the United States can benefit from engaging in free international trade. None of the above.

1. Consider a market of two farmers which are also consumers. The following table contains the maximum production levels over a time period of 8 hours for both wheat and wine. As usual, we assume linear production possibility frontiers. Farmer Wheat Wine 10kg 15kg Albert 21 Berta 11 (a) Identify absolute advantages for each good. (b) Identify comparative advantage. (c) How does the comparative advantage change when calculated over 1 hour of production time? (d) How should Albert and Berta specialise? Who will trade what? (e) Given their production and consumption before trade, Production/Consumption WVheat Wine Albert 5kg 7.5kg 11 Berta 0.51 Assume production changes to the following . 1