Consider the following table for the neighboring nations of North East and West Coast. The table lists maximum feasible hourly rates of production of pastries if no sandwiches are produced and maximum feasible hourly rates of production of sandwiches if no pastries are produced. Assume that the opportunity costs of producing these goods are constant in both nations. Product North East West Coast Pastries (per hour) 50,000 100,000 Sandwiches (per hour) 25,000 200,000 What is the opportunity cost of producing pastries in North East? Of producing sandwiches in North East?
Consider the following table for the neighboring nations of North East and West Coast. The table lists maximum feasible hourly rates of production of pastries if no sandwiches are produced and maximum feasible hourly rates of production of sandwiches if no pastries are produced. Assume that the
Product North East West Coast
Pastries (per hour) 50,000 100,000
Sandwiches (per hour) 25,000 200,000
- What is the opportunity cost of producing pastries in North East? Of producing sandwiches in North East?
- What is the opportunity cost of producing pastries in West Coast? Of producing sandwiches in West Coast?
- Which nation has a
comparative advantage in producing pastries? Which nation has a comparative advantage in producing sandwiches?
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