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Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884 Exercise 21
In an hour, Sue can produce 40 caps or 4 jackets and Tessa can produce 80 caps or 4 jackets.
a. Calculate Sue's opportunity cost of producing a cap.
b. Calculate Tessa's opportunity cost of producing a cap.
c. Who has a comparative advantage in producing caps
d. If Sue and Tessa specialize in producing the good in which each of them has a comparative advantage, and they trade 1 jacket for 15 caps, who gains from the specialization and trade
a. Calculate Sue's opportunity cost of producing a cap.
b. Calculate Tessa's opportunity cost of producing a cap.
c. Who has a comparative advantage in producing caps
d. If Sue and Tessa specialize in producing the good in which each of them has a comparative advantage, and they trade 1 jacket for 15 caps, who gains from the specialization and trade
Explanation
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Sue can produce 40 caps or 4 jackets, in...
Macroeconomics 11th Edition by Michael Parkin
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