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An average worker in Zambia can mine a pound of copper in 30 minutes and produce a pound of tobacco in 90 minutes, while an average worker in Mozambique can mine a pound of copper in 45 minutes and produce a pound of tobacco in 90 minutes. Suppose each worker has 9 hours (540 minutes) of total time to mine copper and/or produce tobacco. (i) Draw FULLY LABELED PPF's for each worker (on separate graphs). Please put copper on the X axis and tobacco on the Y axis. (ii) Specify mutually beneficial terms of trade (tobacco for copper) for these workers. (iii) Based on your terms of trade, add consumption possibility frontiers (CPF's) to your graphs from part (i). **You can, if you'd like, assume that both workers can trade until until their own output is completely exhausted. In other words, you can draw both CPF's as complete lines that intersect both axes. **

An average worker in Zambia can mine a pound of copper in 30 minutes and produce a pound of tobacco in 90 minutes, while an average worker in Mozambique can mine a pound of copper in 45 minutes and produce a pound of tobacco in 90 minutes. Suppose each worker has 9 hours (540 minutes) of total time to mine copper and/or produce tobacco. (i) Draw FULLY LABELED PPF's for each worker (on separate graphs). Please put copper on the X axis and tobacco on the Y axis. (ii) Specify mutually beneficial terms of trade (tobacco for copper) for these workers. (iii) Based on your terms of trade, add consumption possibility frontiers (CPF's) to your graphs from part (i). **You can, if you'd like, assume that both workers can trade until until their own output is completely exhausted. In other words, you can draw both CPF's as complete lines that intersect both axes. **

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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If you could draw the graph and explain it that would be great :)

  

Consider the following scenario: An average worker in Zambia can mine a pound of copper in 30 minutes and produce a pound of tobacco in 90 minutes, while an average worker in Mozambique can mine a pound of copper in 45 minutes and produce a pound of tobacco in 90 minutes. Suppose each worker has 9 hours (540 minutes) of total time to mine copper and/or produce tobacco. (i) Draw FULLY LABELED PPF's for each worker (on separate graphs). Please put copper on the X axis and tobacco on the Y axis. (ii) Specify mutually beneficial terms of trade (tobacco for copper) for these workers. (iii) Based on your terms of trade, add consumption possibility frontiers (CPF's) to your graphs from part (i). **You can, if you'd like, assume that both workers can trade until until their own output is completely exhausted. In other words, you can draw both CPF's as complete lines that intersect both axes **
Transcribed Image Text:Consider the following scenario: An average worker in Zambia can mine a pound of copper in 30 minutes and produce a pound of tobacco in 90 minutes, while an average worker in Mozambique can mine a pound of copper in 45 minutes and produce a pound of tobacco in 90 minutes. Suppose each worker has 9 hours (540 minutes) of total time to mine copper and/or produce tobacco. (i) Draw FULLY LABELED PPF's for each worker (on separate graphs). Please put copper on the X axis and tobacco on the Y axis. (ii) Specify mutually beneficial terms of trade (tobacco for copper) for these workers. (iii) Based on your terms of trade, add consumption possibility frontiers (CPF's) to your graphs from part (i). **You can, if you'd like, assume that both workers can trade until until their own output is completely exhausted. In other words, you can draw both CPF's as complete lines that intersect both axes **
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