gallon of root beer is__________ , and Valerie's opportunity cost of brewing a gallon of root beer is_________ . ________ has an absolute advantage in brewing root beer and__________ has a comparative advantage in brewing root beer. If Poornima and Valerie trade foods with each other,________ will trade away pizza in exchange for root beer. The price of pizza can be expressed in terms of gallons of root beer. The highest price at which pizza can be traded that would make both roommates better off is___________ of root beer, and the lowest price that makes both roommates better off is__________ of root beer per pizza
gallon of root beer is__________ , and Valerie's opportunity cost of brewing a gallon of root beer is_________ . ________ has an absolute advantage in brewing root beer and__________ has a comparative advantage in brewing root beer. If Poornima and Valerie trade foods with each other,________ will trade away pizza in exchange for root beer. The price of pizza can be expressed in terms of gallons of root beer. The highest price at which pizza can be traded that would make both roommates better off is___________ of root beer, and the lowest price that makes both roommates better off is__________ of root beer per pizza
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
3. Opportunity Cost
Poornima and Valerie are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Poornima takes 5 hours to brew a gallon of root beer and 3 hours to make a pizza. Valerie takes 8 hours to brew a gallon of root beer and 4 hours to make a pizza.
Poornima's opportunity cost of brewing a gallon of root beer is__________ , and Valerie's opportunity cost of brewing a gallon of root beer is_________ .
________ has an absolute advantage in brewing root beer and__________ has a comparative advantage in brewing root beer.
If Poornima and Valerie trade foods with each other,________ will trade away pizza in exchange for root beer.
The price of pizza can be expressed in terms of gallons of root beer. The highest price at which pizza can be traded that would make both roommates better off is___________ of root beer, and the lowest price that makes both roommates better off is__________ of root beer per pizza.
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