Question

bnt O Unit 1 AS F X https//hccc.instructure.com/courses/10760/assignments/98331?module item jid-213230 1 Smoothies Cell phones Online Martha 15 per day 3 per day or Online Kelly 10 per day 1 per day This table shows the how many smoothies or cell phones Martha and Kelly can each produce if they put all of their respective resources into producing that good alone. Use this information to answer the following questions 1. Who has an absolute advantage in the production of smoothies? 2. Who has an absolute advantage in the production of cell phones? 3. What is Martha's opportunity cost of producing one smoothie (in terms of cell phones)? 4. What is Kelly's opportunity cost of producing one smoothie (in terms of cell phones)? 5 What is Martha's opportunity cost of producing one cell phone (in terms of smoothies)? 6. What is Kelly's opportunity cost of producing one cell phone (in terms of smoothies)? 7. If each person specializes in the production of the product in which she has a comparative advantage, who should produce smoothies? 8. If each person specializes in the production.of the product in which she has a comparative earch Poub me K F H G D VBNM

Answer 1

1 1 Martha ha tha has an absolute advantage in production roduce more than kelly (15 10) of smoothies as she can produce more than 2 Matha has an absolute advantage in the production of all phones. 3. Martha produces is smoothies by giving up 3 cell phones' production 1. Opportunity cost of producing I smoothy 3 2 + cell phone 4. Kelly produces 10 smoothies by giving up I cell phone's production peppertuvietoj eest of producing ismesthiel's a cell phone' - S. Martha gives up is smoothies to produce a cell phones : opportunity cost of producing I cell phone z Ssmoothies ww up 10 BM00 Hш t produa lаu рrоли .. opportunity cost of producing I cell phone z 10 smoothies. I Kelly should produce smoothies as lit < $). & Mautha should produce cell phones as (5<10).