1. Jane's Island's production possibilities are given in the Corn table to the right. a. Draw a graph of the production possibility possibilities frontier on Jane's Island. (pounds per month) Cloth (yards per month) 3.0 and 0 b. What are Jane's opportunity costs of producing corn and cloth at each output in the table? 2.0 and 2 1.0 and 4 0 and 6 2. 3. 4. In problem 1, Jane is willing to give up 0.75 pounds of corn per yard of cloth if she has 2 yards of cloth; 0.50 pounds of corn per yard of cloth if she has 4 yards of cloth; and 0.25 pound of corn per yard c cloth if she has 6 yards of cloth. a. Draw a graph of Jane's marginal benefit from corn. b. What is Jane's efficient quantity of corn? Joe's production possibilities are given in the table to the right. What are Joe's opportunity costs of producing corn and cloth at each output in the table? In problems 1 and 2, Jane's Island produces and consumes 2 pounds of corn and 2 yards of cloth. Joe's Island produces and consumes 2 pounds of corn and 2 yard of cloth. Now the islands begin to trade. Corn (pounds per Cloth (yards month) per month) 6 and 0 4 and 1.0 2 and 2.0 a. What good does Jane sell to Joe and what good does Jane buy from Joe? 0 and 3.0 b. If Jane and Joe divide the total output of corn and cloth equally, what are the gains from trade?
1. Jane's Island's production possibilities are given in the Corn table to the right. a. Draw a graph of the production possibility possibilities frontier on Jane's Island. (pounds per month) Cloth (yards per month) 3.0 and 0 b. What are Jane's opportunity costs of producing corn and cloth at each output in the table? 2.0 and 2 1.0 and 4 0 and 6 2. 3. 4. In problem 1, Jane is willing to give up 0.75 pounds of corn per yard of cloth if she has 2 yards of cloth; 0.50 pounds of corn per yard of cloth if she has 4 yards of cloth; and 0.25 pound of corn per yard c cloth if she has 6 yards of cloth. a. Draw a graph of Jane's marginal benefit from corn. b. What is Jane's efficient quantity of corn? Joe's production possibilities are given in the table to the right. What are Joe's opportunity costs of producing corn and cloth at each output in the table? In problems 1 and 2, Jane's Island produces and consumes 2 pounds of corn and 2 yards of cloth. Joe's Island produces and consumes 2 pounds of corn and 2 yard of cloth. Now the islands begin to trade. Corn (pounds per Cloth (yards month) per month) 6 and 0 4 and 1.0 2 and 2.0 a. What good does Jane sell to Joe and what good does Jane buy from Joe? 0 and 3.0 b. If Jane and Joe divide the total output of corn and cloth equally, what are the gains from trade?
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter3: Interdependence And The Gains From Trade
Section: Chapter Questions
Problem 4PA
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