Barbara and Antoni each work 8 hours a day producing lemonade and pizza. In eight hours, Antoni can produce 400 pints of lemonade or 200 pizzas. In the same amount of time, Barbara can produce 450 pints of lemonade or 300 pizzas. Currently, Antoni decides to produce 200 pints of lemonade and 100 pizzas, and Barbara decides to produce 180 units of each good. Draw the production possibilities frontiers for Barbara and Antoni, with pizza on the x-axis. Include current production points. In your own words, explain absolute advantage. Who has absolute advantage in lemonade production? In pizza production? In your own words, explain comparative advantage. Define opportunity cost and provide an example of an opportunity cost you face in your own life.

Barbara and Antoni each work 8 hours a day producing lemonade and pizza. In eight hours, Antoni can produce 400 pints of lemonade or 200 pizzas. In the same amount of time, Barbara can produce 450 pints of lemonade or 300 pizzas. Currently, Antoni decides to produce 200 pints of lemonade and 100 pizzas, and Barbara decides to produce 180 units of each good. Draw the production possibilities frontiers for Barbara and Antoni, with pizza on the x-axis. Include current production points. In your own words, explain absolute advantage. Who has absolute advantage in lemonade production? In pizza production? In your own words, explain comparative advantage. Define opportunity cost and provide an example of an opportunity cost you face in your own life.

Name: Barbara and Antoni each work 8 hours a day producing lemonade and piz
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Description: Barbara and Antoni each work 8 hours a day producing lemonade and pizza. In eighthours, Antoni can produce 400 pints of lemonade or 200 pizzas. In the same amountof time, Barbara can produce 450 pints of lemonade or 300 pizzas. Currently, Antonideci

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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