Principles Of Microeconomics
7th Edition
ISBN: 9781260111088
Author: Robert H. Frank, Ben Bernanke, Kate Antonovics, Ori Heffetz
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Question
Chapter 2, Problem 3P
To determine
The
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Isabella and Antonio are auto mechanics. Isabella takes 4 hours to replace a clutch and 2 hours to replace a set of brakes. Antonio takes 6 hours to replace a clutch and 2 hours to replace a set of brakes. State whether anyone has an absolute advantage at either task and, for each task, identify who has a comparative advantage.
Instructions: Enter your responses rounded to two decimal places.
The opportunity cost of replacing a set of brakes for Isabella is of a clutch replacement.
The opportunity cost of replacing a set of brakes for Antonio is of a clutch replacement.
has a comparative advantage in brake replacement.
has a comparative advantage in clutch replacement.
has an absolute advantage in brake replacement.
has an absolute advantage in clutch replacement.
Isabella and Antonio are auto mechanics. Isabella takes 8 hours to replace a clutch and 6 hours to replace a set of brakes. Antonio
takes 4 hours to replace a clutch and 2 hours to replace a set of brakes. State whether anyone has an absolute advantage at either
task and, for each task, identify who has a comparative advantage.
Instructions: Enter your responses rounded to two decimal places.
The opportunity cost of replacing a set of brakes for Isabella is
The opportunity cost of replacing a set of brakes for Antonio is
has a comparative advantage in brake replacement.
has a comparative advantage in clutch replacement.
has an absolute advantage in brake replacement.
has an absolute advantage in clutch replacement.
Antonio
Isabella
Antonio
Antonio
Nancy and Bill are auto mechanics. Nancy takes 6 hours to replace a clutch and 4 hours to replace a set of brakes. Bill takes 6 hours to replace a clutch and 8 hours to replace a set of brakes. State whether anyone has an absolute advantage at either task and, for each task, identify who has a comparative advantage.Instructions: Enter your responses rounded to two decimal places.The opportunity cost of replacing a set of brakes for Nancy is ?
The opportunity cost of replacing a set of brakes for Bill is ?
Who has a comparative advantage in brake replacement?
Who has a comparative advantage in clutch replacement?
Who has? an absolute advantage in brake replacement?
Who has an absolute advantage in clutch replacement?
Chapter 2 Solutions
Principles Of Microeconomics
Knowledge Booster
Similar questions
- Nancy and Bill are auto mechanics. Nancy takes 8 hours to replace a clutch and 6 hours to replace a set of brakes. Bill takes 4 hours to replace a clutch and 2 hours to replace a set of brakes. State whether anyone has an absolute advantage at either task and, for each task, identify who has a comparative advantage. Instructions: Enter your responses rounded to two decimal places. The opportunity cost of replacing a set of brakes for Nancy is 0.75 The opportunity cost of replacing a set of brakes for Bill is 0.50 (Click to select) v has a comparative advantage in brake replacement. (Click to select) v has a comparative advantage in clutch replacement. Neither v has an absolute advantage in brake replacement. Nancy has an absolute advantage in clutch replacement.arrow_forwardAs the manager at a local florist, you supervise two employees, Anita and Jerome. There are two tasks that need to be completed: floral arrangements and flower delivery. It takes Anita 30 minutes to finish one floral arrangement and it takes her 40 minutes to make one delivery. It takes Jerome 10 minutes to finish one floral arrangement and it takes him 30 minutes to make one delivery. a. Who has a comparative advantage in floral arrangements? What about deliveries? b. Suppose, initially, Jerome and Anita each spent 4 hours each day doing floral arrangements and 2 hours each day doing deliveries. If you changed their tasks so that each individual did nothing but the task for which they had a comparative advantage, how many more floral arrangements would your store make, and how many more deliveries?arrow_forwardJake and Jill spend their time picking apples and strawberries. The quantities they can pick in an hour are shown in the table below. Quantity Picked in One Hour Pounds of Apples Pounds of Strawberries Jake 8 4 Jill 10 10 Suppose Jake specializes in picking apples, and Jill specializes in picking strawberries. If Jake and Jill then trade 3 apples for 2 strawberries, Jake will end up consuming Suppose Jake specializes in picking apples, and Jill specializes in picking strawberries. If Jake and Jill work for one hour, then trade 3 apples for 2 strawberries, Jake will end up consuming apples and strawberries.arrow_forward
- Taylor and Bobby are auto mechanics. Taylor takes 12 hours to replace an engine and 4 hours to replace a set of brakes. Bobby takes 8 hours to replace an engine and 4 hours to replace a set of brakes. State whether anyone has an absolute advantage at either task and, for each task, identify who has a comparative advantage.arrow_forwardSuppose two roommates, Sam and Terry, agree that they should clean the apartment each week. It takes Sam one hour to vacuum, and one hour to clean the bathroom. It would take Terry 90 minutes to vacuum and 2 hours to clean the bathroom. Does Terry have a Comparative Advantage in one of these activities? Is it possible that if the roommates each do only one of the tasks every week they would have more combined free time than if they alternated weeks of vacuuming and bathroom cleaning?arrow_forwardIn one day, Dahyun can produce 20 cakes or 40 brownies, and Sana can produce 25 cakes or 125 brownies. Suppose Dahyun and Sana each specialize in producing the good in which they have a comparative advantage. Select the statement that is TRUE for the following terms of trade: trade 1 cake for 7 brownies a Dahyun loses but Sana gains b Dahyun gains but Sana loses c Dahyun gains but Sana is neither better nor worse off (i.e. she is indifferent) d Both Dahyun and Sana are better offarrow_forward
- Bob and Erik are both experienced in making pizzas and burgers. In one day, Bob can make 8 pizzas or 32 burgers. With the same effort and in the same day, Erik can make 12 pizzas or 36 burgers. Who has the absolute advantage in making pizzas and who has the absolute advantage in making burgers? Who has the comparative advantage in each activity? Show your derivations. According to the principle of comparative advantage, in which activity should each person (Bob and Erik) specialize in order to gain from trade? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardSuppose there are two individuals, Casey and Rick, who live in a very simplified world where only two goods are produced and consumed: rice and beans. The production opportunity cost for Casey is 4.00 kg4.00 kg of rice for every kilogram of beans. Rick has a production opportunity cost of 2.00 kg2.00 kg of rice for every kilogram of beans. Casey eventually realizes that, through trade, both individuals can be better off. Rick is willing to trade. What price can be settled between these two parties such that both individuals can enjoy more rice and beans? Give your answer to two decimals.arrow_forwardAfter specialization, suppose the two agree on a price of 7 units of good X for each unit of good Y. When the two individuals make the trade, they exchange 140 units of good X for 20 units of good Y. Recall that the individual who has specialized in the production of X would trade 140 units of good X and receive 20 units of good Y, while the individual who specialized in the production of good Y would trade 20 units of good Y and receive 140 units of good X.arrow_forward
- Suppose there are two individuals, Casey and Rick, who live in a very simplified world where only two goods are produced and consumed; rice and beans. The production opportunity cost for Casey is 4.00kg of rice for every kilogram of beans. Rick has a production opportunity cost of 2.00 kg of rice for every kilogram of beans. Casey eventually realizes that, through trade, both individuals can be better off. Rick is willing to trade. What price can be settled between these two parties such that both individuals can enjoy more rice and beans?arrow_forwardComparative and absolute advantage Elijah and Aneesha are farmers. Each one owns an 18-acre plot of land. The following table shows the amount of zucchini and watermelon each farmer can produce per year on a given acre. Each farmer chooses whether to devote all acres to producing zucchini or watermelon or to produce zucchini on some of the land and watermelon on the rest. ZucchiniWatermelon(Pounds per acre)(Pounds per acre)Elijah123Aneesha186arrow_forwardestion 20 of 20 > Vincent and Jean are two cooks who work in a village. Each of them can either bake cakes or make pizzas. Every ingredient is readily available to them, and the only scarce resource is the cooks' time. Vincent can bake 10 cakes or make 5 pizzas in an hour. Jean can bake 12 cakes or make 8 pizzas in an hour. Please answer the four questions. 1. Which cook has the absolute advantage in baking 2. Which cook has the absolute advantage in making cakes? pizzas? ONeither O Vincent O Jean O Jean O Vincent O Neither 3. Which cook has the comparative advantage in baking 4. Which cook has the comparative advantage in making cakes? pizzas? Unit 7- Chapter 1..xlsx 0 Unit 7-Chapter 1...xlsx Topic 2 (2).docx Topic 2 (1).docx Show all 11:10 PM 73 F EENG 12/8/2021 ins prt sc f12 delete COLI dn 6d 6J 144 I14 backspace unu lock of enter H. pause T shift pua alt ctrlarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education