Question

Can someone answer question 6 for me, please? the choices are a. 1/2 pie and 3/4 pie.
b. 3/4 pie and 1 pie.
c. 3/4 pie and 2 pies.
d. 1 pie and 1 1/2 pies.

These figures illustrate the production possibilities available to Barney and Betty with 8 hours of labor in their bakery. Answer the questions using the following figures. Barney Betty Loaves of Bread Loaves of Bread Pies 15 Ples d. 1. The opportunity cost of 1 loaf of bread for Barney is a. 1/4 pie. b. 1/2 pie. C. 1 pie. d. 2 pies. d. 2. The opportunity cost of 1 pie for Betty is a. 1/4 loaf of bread. b. 3/4 loaf of bread. C. 1 loaf of bread. d. 4/3 loaves of bread. 3. Barney has an absolute advantage in a. both goods, and Betty has an absolute advantage in neither good. b. loaves of bread, and Betty has an absolute advantage in pies. c.pies, and Betty has an absolute advantage in loaves of bread. d. neither good, and Betty has an absolute advantage in both goods. 4. Barney has a comparative advantage in a. both goods, and Betty has a comparative advantage in neither good. b. loaves of bread, and Betty has a comparative advantage in pies. C. neither good, and Betty has a comparative advantage in both goods. d. pies, and Betty has a comparative advantage in loaves of bread. 5. If Barney and Betty both specialize in the good in which they have a comparative advantage, a. total production of bread will be 7 and total production of pies will be 15. b. total production of bread will be 20 and total production of pies will be 14. c. total production of bread will be 27 and total production of pies will be 29. d. total production of bread will be 40 and total production of pies will be 22. 6. Initially, Barney is spending one-half of his time making pies and the other one-half of his time making bread, and Betty is doing the same. Relative to this initial situation, Barney and Betty could specialize according to the principle of comparative advantage, and both could benefit from this new arrangement, provided they agree that one loaf of bread will trade for somewhere between a. 1/2 pie and 3/4 pie. b. 3/4 pie and 1 pie.

Answer 1

Showrs of labor cesta kenity cost of Bread Barney = 14 for 2 Pies 7 opp. cost of ipe for Belly is = 20 1.33 from Aus is ① 3 D Barney has neither absolute advantage in of good. (4) D Barney has CA in Pest Betly has A un bread bl of lower opportunity cost Total Prod Pies = 14 & Bread = 20