Both countries would gain from trade when trade price lies between the opportunity costs of the countries.
Opportunity cost of producing 1 lb of soybeans (Costa Rica) = 16/12 = 1.33 lbs coffee ( = 1/slope)
Opportunity cost of producing 1 lb of soybeans (Honduras) = 12/6 = 2 lbs coffee
option c is correct (1.5 lbs of coffee for 1 lb of soybeans lies between the opportunity costs of both the countries)
Figure 1 Costa Rica's Production Possibilities Frontier 20 Ias Honduras's Production Possibilities Frontier Toybeans in pounds)...
explain please 1/1 Figure 3-20 Canada's Production Possibilities Frontier Mexico's Production Possibilities Frontier 2 1 God Good Y 4 6 + 8 + 10 + + + + + 12 14 16 18 20 + + GoodX 4 6 8 10 12 14 16 18 GevdX Refer to Figure 3-20. Canada would incur an opportunity cost of 6 units of Good X if it increased its production of Good Y by 3 units. 6 units 9 units. 12 units. Correct...
a,b,c 2. (20 points) Costa Rica and Honduras produce two goods, bananas and pineapples. The leaders of the two countries got together and decided each should specialize in one of the two goods and then trade. However, they (being typical politicians) couldn't figure out what good each country should produce. They hire two economists (one from each country) to determine the direction of trade. They obtain daily output per worker of each good in each country. The data are shown...
Figure 3-12 Argentina's Production Possibilities Frontier Peru's Production Possibilities Frontier 2 Tam (ix 3) + 2 + 4 + 6 + 8 + 10 12 14 16 18 20 st ) tam 6 8 10 12 14 16 18 20 a ) Refer to Figure 3-12. If Argentina and Peru each divides its time equally between producing com and fish, then total production is 13 tons of corn and 15 tons of fish. 13 tons of corn and 10 tons...
Figure 3-6 Maxine's Production Possibilities Frontier Daisy's Production Possibilities Frontier TA 20 T 3 6 9 12 15 18 21 24 27 30 per 6 9 12 15 18 21 24 27 10 pies 11. Refer to Figure 3-6. If the production possibilities frontiers shown are each for one day of work, then which of the following combinations of pies and tarts could Maxine and Daisy together not make in a given day? a. 2 pies and 25 tarts b....
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...
Consider the following production times that it takes Costa Rica and Brazil to produce either1 ton of bananas or I tons of coffee ime it takes to Time it takes to produce 1 ton of bananas produce I ton of coffee Costa Rica Brazil 3 months 6 months 2 months 8 months may oaow many tons of bamana could Brazil produce in 1 year? (1 point) e How many tons of coffee could Costa Rica produce in I year? How...
Figure 1 Questo 8 Not yet answered Jordan's Production Possibilities Frontier Perry's Production Possibilities Frontier Points out at 100 P Flag question Refer to Figure 1. The opportunity cost of 1 novel for Perry is Select one: a. 1/6 poem b. 2 poems c. 6 poems d. 12 poems.
Question 17 1 pts On a production possibilities frontier, 500 pounds of apples and 1,200 pounds of bananas can be produced while at another point on the same frontier, 300 pounds of apples and 1,300 pounds of bananas can be produced. Between these points, what is the opportunity cost of producing a pound of bananas? 2 pounds of apples 2 pounds of bananas 200 pounds of apples 0.5 a pound of apples 1 pts Question 18
Perry's Production Possibilities Frontier Jordan's Production Possibilities Frontier Refer to Figure 3-4. Perry and Jordan ach divides their time equally between writing novels and writing poems, then total production is a novels and 12 poems b. 3 novels and 12 poems c. 6 novels and 24 poems 2 novels and poems QUESTION 23 Suppose a gardener produces both green beans and com in her garden. If she must give up 14 bushels of com to get 5 bushels of green...
The following graph shows the production possibilities frontier for the imaginary country of Contente under conditions of increasing costs. In the absence of trade, the relative cost of corn in Contente in terms of phones (or the marginal rate of transformation (MRT) of corn into phones) is shown by the slope of line t1, tangent to the production possibilities frontier at point A. 300 270 Consumption After Trade 240 210 180 В с CORN (Bushels) 150 120 90 60 30...