I don't understand the second part of this homework. If Frankie and Johnny completely specialize according to comparative advantage, what will happen to the amount of eggs and milk? I have the opportunity cost calculated to understand who should do what in this case. But what will I do to that number? EggsEggs40JohnnyFrankie302010RF10 15Milk40 MilkWithout specialization, Johnnyproduces combination FWithout specialization, Frankieproduces combination JType your answers in all of the blanks and submitFor Frankie, the opportunity cost of 1 unit of milk is1units of eggs. For Johnny, the opportunityYou are correctcost of 1 unit of milk isunits of eggs. Without specialization, the total output of eggs isYou are correct20 30units, and the total output of milk is30units, for aYou are correctYou are correctcombined total of60units of output. If Frankie and Johnny completely specialize according toYou are correctcomparative advantage, Frankie produces onlymilkand Johnny produces onlyYou are correct. After specialization, combined total output iseggs90units.You are correctYou are incorrectSpecializing according to comparative advantage leads to a gain of 30X units ofYou are incorrectoutputYou are incorrect

When two individuals, firms, or countries make an exchange of goods and services using their…

Answered: Eggs Eggs 40 Johnny Frankie 30 20 10 RF…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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I don't understand the second part of this homework. If Frankie and Johnny completely specialize according to comparative advantage, what will happen to the amount of eggs and milk? I have the opportunity cost calculated to understand who should do what in this case. But what will I do to that number?

Eggs
Eggs
40
Johnny
Frankie
30
20
10
RF
10 15
Milk
40 Milk
Without specialization, Johnny
produces combination F
Without specialization, Frankie
produces combination J
Type your answers in all of the blanks and submit
For Frankie, the opportunity cost of 1 unit of milk is
1
units of eggs. For Johnny, the opportunity
You are correct
cost of 1 unit of milk is
units of eggs. Without specialization, the total output of eggs is
You are correct
20

30
units, and the total output of milk is
30
units, for a
You are correct
You are correct
combined total of
60
units of output. If Frankie and Johnny completely specialize according to
You are correct
comparative advantage, Frankie produces only
milk
and Johnny produces only
You are correct
. After specialization, combined total output is
eggs
90
units.
You are correct
You are incorrect
Specializing according to comparative advantage leads to a gain of 30
X units of
You are incorrect
output
You are incorrect

Definition Video Definition Ability of a country to produce goods and services at a lower opportunity cost compared to other countries. Here, opportunity cost refers to the forgone units of one good in order to produce one more unit of another good. For example, the opportunity cost of producing good X in country A is 2Y and in country B is 1.25Y. Country B has a lower opportunity cost of producing good X than country A. Therefore, country B has a comparative advantage in the production of good X. Video

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