1. Assume you are stranded on an island with another person. The table below gives the maximum amounts that you and the other person can produce per day, if you devote all your resources to the production of that one good. Further, assume both you and the other person face constant opportunity costs in production. Good You Other Person Food (lbs.) 30 40 Water (gallons) 90 150 a. What is the pattern of absolute advantage? In other words, who has absolute advantage in food production? In water production?

1. Assume you are stranded on an island with another person. The table below gives the maximum amounts that you and the other person can produce per day, if you devote all your resources to the production of that one good. Further, assume both you and the other person face constant opportunity costs in production. Good You Other Person Food (lbs.) 30 40 Water (gallons) 90 150 a. What is the pattern of absolute advantage? In other words, who has absolute advantage in food production? In water production?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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