If the fictitious country of Islandia puts all of its production resources into fish, it can produce 60 units of fish. If it puts all of its production resources into coconuts, it can produce 45 units of coconuts. If the fictitious country of Mountania puts all of its production resources into fish, it can produce 30 units of fish. If it puts all of its production resources into coconuts, it can produce 20 units of coconuts. Assume that both countries have constant cost functions for both products. Instructions: Round your answers to 2 decimal places. a. What is the opportunity cost of producing 1 unit of fish in Islandia? 0.5 unit(s) of coconuts b. What is the opportunity cost of producing 1 unit of coconuts in Islandia? |unit(s) of fish c. What is the opportunity cost of producing 1 unit of fish in Mountania? 45 unit(s) of coconuts d. What is the opportunity cost of producing 1 unit of coconuts in Mountania? 15 unit(s) of fish e. Mountania ] has a comparative advantage in the production of fish. Islandia ]has a comparative advantage in the production of coconuts. f. What will be the terms of trade for fish? Between[ ]and ]unit(s) of coconuts g. What will be the terms of trade for coconuts? Between and |unit(s) of fish
If the fictitious country of Islandia puts all of its production resources into fish, it can produce 60 units of fish. If it puts all of its production resources into coconuts, it can produce 45 units of coconuts. If the fictitious country of Mountania puts all of its production resources into fish, it can produce 30 units of fish. If it puts all of its production resources into coconuts, it can produce 20 units of coconuts. Assume that both countries have constant cost functions for both products. Instructions: Round your answers to 2 decimal places. a. What is the opportunity cost of producing 1 unit of fish in Islandia? 0.5 unit(s) of coconuts b. What is the opportunity cost of producing 1 unit of coconuts in Islandia? |unit(s) of fish c. What is the opportunity cost of producing 1 unit of fish in Mountania? 45 unit(s) of coconuts d. What is the opportunity cost of producing 1 unit of coconuts in Mountania? 15 unit(s) of fish e. Mountania ] has a comparative advantage in the production of fish. Islandia ]has a comparative advantage in the production of coconuts. f. What will be the terms of trade for fish? Between[ ]and ]unit(s) of coconuts g. What will be the terms of trade for coconuts? Between and |unit(s) of fish
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
100%
Transcribed Image Text:If the fictitious country of Islandia puts all of its production resources into fish, it can produce 60 units of fish. If it puts all of its
production resources into coconuts, it can produce 45 units of coconuts. If the fictitious country of Mountania puts all of its production
resources into fish, it can produce 30 units of fish. If it puts all of its production resources into coconuts, it can produce 20 units of
coconuts. Assume that both countries have constant cost functions for both products.
Instructions: Round your answers to 2 decimal places.
a. What is the opportunity cost of producing 1 unit of fish in Islandia?
0.5 unit(s) of coconuts
b. What is the opportunity cost of producing 1 unit of coconuts in Islandia?
2 unit(s) of fish
c. What is the opportunity cost of producing 1 unit of fish in Mountania?
45 unit(s) of coconuts
d. What is the opportunity cost of producing 1 unit of coconuts in Mountania?
15 unit(s) of fish
e. Mountania
v has a comparative advantage in the production of fish.
Islandia
v has a comparative advantage in the production of coconuts.
f. What will be the terms of trade for fish?
Between
and
unit(s) of coconuts
g. What will be the terms of trade for coconuts?
Between
and
unit(s) of fish
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
f. What will be the terms of trade for fish?
Between and unit(s) of coconuts
g. What will be the terms of trade for coconuts?
Between and unit(s) of fish
Solution
by Bartleby ExpertKnowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education