Assume that Pablo and Micah can switch between producing baseballs and producing bats at a constant rate. Labor Hours Needed to Make 1 Quantity Produced in 30 Hours baseball bat baseball bat Pabilo 3 36 12 Micah 2 36 18 Refer to Table 3-8. At which of the following prices would both Pablo and Micah gain from trade with each other? O a 15 baseballs for 10 bats Ob 15 baseballs for 6 bats Oc 15 baseballs for 3 bats Od Pablo and Micah could not both gain from trade with each other at any price.
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- Country Denali Congaree Suppose that initially Denali uses 1 million hours of labor per day to produce shorts and 3 million hours per day to produce almonds, while Congaree uses 3 million hours of labor per day to produce shorts and 1 million hours per day to produce almonds. As a result, Denali produces 6 million pairs of shorts and 36 million pounds of almonds, and Congaree produces 12 million pairs of shorts and 16 million pounds of almonds. Assume there are no other countries willing to engage in trade, so, in the absence of trade between these two countries, each country consumes the amount of shorts and almonds it produces. Shorts Almonds (Pairs per hour of labor) (Pounds per hour of labor) 6 12 16 Denali's opportunity cost of producing 1 pair of shorts is of almonds. Therefore, comparative advantage in the production of almonds. 4 Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In…15. PLEASE ONLY C A firm can use three different production technologies, withcapital and labor requirements at each level of output as follows:TECHNOLOGY 1 TECHNOLOGY 2 TECHNOLOGY 3DailyOutputK L K L K L100 3 7 4 5 5 4150 3 10 4 7 5 5200 4 11 5 8 6 6250 5 13 6 10 7 8a. Suppose the firm is operating in a high-wage country, wherecapital cost is $100 per unit per day and labor cost is $80 perworker per day. For each level of output, which technologyis cheapest?b. Now suppose the firm is operating in a low-wage country,where capital cost is $100 per unit per day but labor cost isonly $40 per unit per day. For each level of output, whichtechnology is cheapest?c. Suppose the firm moves from a high-wage to a low-wagecountry but its level of output remains constant at 200 unitsper day. How will its total employment change?Consider Babs and Donna, who can each produce cake, beer, or some combination of the two using only 40 hours of labor each. Babs can produce a maximum of 120 cakes if she produces no beer, and 150 units of beer if she produces no cake. Donna can produce a maximum of 40 cakes with no beer produced; if she makes no cake, she can produce 100 units of beer. In autarky, each producer spent half of her time producing cake and the other half producing beer. But now let's say that Babs and Donna decide to trade with each other. They decide that each producer will fully specialize in the good where she has comparative advantage. Later, they will work out the details on how much beer will trade for how many cakes and vice versa. Calculate the gains in trade in cakes that Babs and Donna together (as a group) will experience due to trading. In other words, tell me how many more cakes the two of them can now consume (together) by trading instead of remaining in autarky.
- 15. A firm can use three different production technologies, withcapital and labor requirements at each level of output as follows:TECHNOLOGY 1 TECHNOLOGY 2 TECHNOLOGY 3DailyOutputK L K L K L100 3 7 4 5 5 4150 3 10 4 7 5 5200 4 11 5 8 6 6250 5 13 6 10 7 8a. Suppose the firm is operating in a high-wage country, wherecapital cost is $100 per unit per day and labor cost is $80 perworker per day. For each level of output, which technologyis cheapest?b. Now suppose the firm is operating in a low-wage country,where capital cost is $100 per unit per day but labor cost isonly $40 per unit per day. For each level of output, whichtechnology is cheapest?c. Suppose the firm moves from a high-wage to a low-wagecountry but its level of output remains constant at 200 unitsTable 3-27 Assume that Huang and Min can switch between producing parasols and producing porcelain plates at a constant rate. Labor Hours Needed to Make 1 Quantity Produced in 36 Hours Parasol Plate Parasol Plate Huang Min 16 18 16 14 18 19 Refer to Table 3-27. Assume that Huang and Min each has 36 labor hours available. Originally, each person divided his/her time equally between the production of parasols and plates. Now, each person spends all their time producing the good in which they have a comparative advantage. As a result, the total output of plates increased by O a 1.5. O b. 3. Oc. 9. Od. 0.The table below shows the number of units of labour and capital used in 4 alternative production techniques for producing 1000 widgets per month. Technique A В Labour 20 40 46 35 Сaptal 46 39 21 59 If the price of labour is $9 and the price of capital is $6, which production technique minimizes the costs of producing 1000 units of output? ..... O A. A О В. В ОС. D O D. C O E. Any of the techniques have the same cost.
- Assume that a worker can either drive a delivery truck or paint houses in a given day. It takes 5 hours to complete a delivery route and 2.5 hours to paint the exterior of a house. When a worker chooses to paint 4 houses in a neighborhood, what is the opportunity cost of this decision? O The pay the worker receives for painting 4 houses O Completing 4 delivery routes O The pay the worker would have received from completing a delivery route O The pay the worker would have received from completing 2 delivery routes O The pay the worker would have received for completing 0.25 delivery routesTable 3-9 Assume that Maya and Miguel can switch between producing mixers and producing toasters at a constant rate. Hours Needed to Make 1 Amount Produced in 60 Hours Toaster Mixer Toaster Mixer Maya 6. 3 10 20 Miguel 10 15 6 12 Refer to Table 3-9. Assume that Maya and Miguel each has 60 hours available. If each person divides his/her time equally between the production of mixers and toasters, then total production is O a. 8 mixers and 16 toasters. O b. 3.5 mixers and 6 toasters. O c. 15 mixers and 9 toasters. O d. 20 mixers and 12 toasters.Que You have decided that you want to attend a renaissance fair as King Henry VIII. You estimate that it will cost $80 to assemble your costume. After spending $80 on the costume, you realize that the additional pieces you need will cost you $20 more. The marginal cost of completing the O $20 $80 O $60 O $100
- Suppose you have a team of two workers: one is a baker and one is a chef. Explain why file kitchen can produce more meals in a given period of time if each worker specializes in what they do best than if each worker tries to do everything from appetizer to dessert.If two painters can paint 200 square feet of wall in an hour, and three painters can paint 275 square feet, what is the marginal product of the third painter?Give the three reasons that explain why the division of labor increases an economys level of production.