3. Opportunity Cost Cho and Ginny are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Cho takes 3 hours to brew a gallon of root beer and 2 hours to make a pizza. Ginny takes 7 hours to brew a gallon of root beer and 5 hours to make a pizza. Cho's opportunity cost of making a pizza is of root beer, and Ginny's opportunity cost of making a pizza is of root beer. has an absolute advantage in making pizza, and has a comparative advantage in making pizza. If Cho and Ginny trade foods with each other, will trade away pizza in exchange for root beer. The price of pizza can be expressed in terms of gallons of root beer. The highest price at which pizza can be traded that wwould make both roommates better off is of root beer, and the lowest price that makes both roommates better off is of root beer per pizza.

3. Opportunity Cost Cho and Ginny are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Cho takes 3 hours to brew a gallon of root beer and 2 hours to make a pizza. Ginny takes 7 hours to brew a gallon of root beer and 5 hours to make a pizza. Cho's opportunity cost of making a pizza is of root beer, and Ginny's opportunity cost of making a pizza is of root beer. has an absolute advantage in making pizza, and has a comparative advantage in making pizza. If Cho and Ginny trade foods with each other, will trade away pizza in exchange for root beer. The price of pizza can be expressed in terms of gallons of root beer. The highest price at which pizza can be traded that wwould make both roommates better off is of root beer, and the lowest price that makes both roommates better off is of root beer per pizza.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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which seems to be correct?
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3. Opportunity Cost Frances and Latasha are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Frances takes 4 hours to brew a gallon of root beer and 2 hours to make a pizza. Latasha takes 6 hours to brew a gallon of root beer and 4 hours to make a pizza. Frances's opportunity cost of brewing a gallon of root beer is and Latasha's opportunity cost of brewing a gallon of root beer is has an absolute advantage in brewing root beer, and has a comparative advantage in brewing root beer. If Frances and Latasha trade foods with each other, will trade away pizza in exchange for root beer. The price of pizza can be expressed in terms of gallons of root beer. The highest price at which pizza can be traded that would make both roommates v of root beer per pizza. better off is of root beer, and the lowest price that makes both roommates better off is…
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