a. What is Paulie's opportunity cost of producing a cup of ice cream? Paulie's opportunity cost:   t‑shirts b. What is Vinny's opportunity cost of producing a t-shirt? Vinny's opportunity cost:   cups of ice cream c. Paulie has a comparative advantage in  and Vinny has a comparative advantage in

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Suppose that Paulie and Vinny each can produce ice cream or t-shirts. The table shows the quantity of each good that Paulie and Vinny each can produce in 1 hour, respectively, if they devote all of their time and effort into making the good. Round all answers to two decimal places.

  Ice cream (cups) T-shirts (quantity)
Paulie 3.00 17.00
Vinny 6.00 13.00
a. What is Paulie's opportunity cost of producing a cup of ice cream?
Paulie's opportunity cost:
 
t‑shirts
b. What is Vinny's opportunity cost of producing a t-shirt?
Vinny's opportunity cost:
 
cups of ice cream
c. Paulie has a comparative advantage in
 and Vinny has a comparative advantage in
 
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