Question

Figure 3-12 Argentina's Production Possibilities Frontier Peru's Production Possibilities Frontier 1 Cor 1 Coru (ix tons) (ix tons) 2 4 6 8 10 12 14 16 18 20 Fisk (ix tox) 2 4 6 8 10 12 14 16 18 20 Fisk (ix tox5) Assume that Argentina and Peru are the only two countries in this world. If Argentina and Peru both divided their time equally between the production of Corn and Fish, what would be the total global production of both goods? If both countries produced only corn, how much corn would be produced globally/ If both countries produced only fish, how much fish would be produced globally? What is the opportunity cost of one ton of corn in Argentina? What is the opportunity cost of one ton of fish in Peru?

Answer 1

When time is distributed equally upon with goods Agentina wall Produce 18 to becomes = 9 couns (tous) 12 to Fish = 6 fishes (tous) 2 Peu will produce 6 +0 Coons = 3 corrus (tous) 2 10+2 berh = 5 coms (tous) 2 Total Global production Coms / Fishes I Argentina a T 6 Pere 13 15 12 !! Total Global production is 12 tous of corus and 11 tous of fishes 1 Ausuan

when leoth countries are producing comes total production Argentina = 18 Peni 6 24 tous If both countries only produced coms total would production would we 24 tones of coms (Ausher) If both countries only produced fish Maentina 12 Penu 18 tones If both counties produced only feshes would production is 18 tous of fishes

Opportunity cost of I one of com = 12 = 12% tous of 15 bisu Auswer 1 Opportunity cost of I tou of 3. tous of 5 corre fish = 10