This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose that Rosie and Betty spend their free time making cakes and cookies. Is it possible for ... (Read 78 times)

LaDunn

  • Hero Member
  • *****
  • Posts: 526
on: Jun 29, 2018
Suppose that Rosie and Betty spend their free time making cakes and cookies.
 
  Is it possible for Betty to have an absolute advantage in the production of both cakes and cookies? Is it possible for Betty to have a comparative advantage in the production of both cakes and cookies? Explain.

Question 2

To draw your budget line between steak and lobster, all you need to know is your income.
 
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Heffejeff

  • Sr. Member
  • ****
  • Posts: 336
Reply #1 on: Jun 29, 2018
Answer to Question 1

Yes, it is possible for Betty to have an absolute advantage in the production of cakes and cookies. This simply means that she is able to produce more per hour. However, Betty cannot have a comparative advantage in producing both cakes and cookies. Because the opportunity cost of producing a cookie is the reciprocal of the opportunity cost of making a cake, it is impossible to have the lower opportunity cost of each.

Answer to Question 2

FALSE


LaDunn

  • Member
  • Posts: 526
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

miss_1456@hotmail.com

  • Member
  • Posts: 289
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

Cyanide works by making the human body unable to use oxygen.

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

The Geologic Time Scale The Geologic Time Scale
Richmond, Virginia, lies in ruins in April 1865 at the time of Lincoln’s visit—and a few days before Richmond, Virginia, lies in ruins in April 1865 at the time of Lincoln’s visit—and a few days before
Barenaked Ladies - Lovers in a Dangerous Time Barenaked Ladies - Lovers in a Dangerous Time
Environmental Systems in Space and Time Environmental Systems in Space and Time
Weak bones cause the spine to collapse over time Weak bones cause the spine to collapse over time
The age-adjusted rate of melanoma, a deadly form of skin cancer, from 1973 to 2000. Over that time p The age-adjusted rate of melanoma, a deadly form of skin cancer, from 1973 to 2000. Over that time p
Video: Types of Shock (Part 2 of 2)

For a complete list of videos, visit our video library