If the fictitious country of Islandia puts all of its production resources into fish, it can produce 40 units of fish. If it puts all of its production resources into coconuts, it can produce 20 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 10 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? 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? unit(s) of coconuts d. What is the opportunity cost of producing 1 unit of coconuts in Mountania? |unit(s) of fish e. (Click to select) ♥ has a comparative advantage in the production of fish. (Click to select) ♥ 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 40 units of fish. If it puts all of its production resources into coconuts, it can produce 20 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 10 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? 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? unit(s) of coconuts d. What is the opportunity cost of producing 1 unit of coconuts in Mountania? |unit(s) of fish e. (Click to select) ♥ has a comparative advantage in the production of fish. (Click to select) ♥ 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
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I was wondering what the letter D through G was thank you.
Transcribed Image Text:Connect Problem CP 20-05 (algo)
If the fictitious country of Islandia puts all of its production resources into fish, it can produce 40 units of fish. If it puts all of its
production resources into coconuts, it can produce 20 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 10 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?
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?
unit(s) of coconuts
d. What is the opportunity cost of producing 1 unit of coconuts in Mountania?
unit(s) of fish
e. (Click to select) v has a comparative advantage in the production of fish.
|(Click to select) 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
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