hi can you please answer this thank you Question 23=Kayla's PPF is defined by 10 = 2Qw + Qc where Qw is bushels of wheat and Qc isbushels of corn. Josel's PPF is defined by 12 3Qw + 4Qc.Suppose that Kayla and Josel are part of the same team (i.e., a joint PPF) and theytrade with outside merchants (i.e., Josel and Kayla do not trade with each other).The terms of trade are 2 bushels of wheat in exchange for 3 bushels of corn. Kaylawants to consume the amount of corn she produces. Josel wants to consume 2bushels of wheat and then as much corn as possible. If Kayla and Josel maximizesthe value of production, it must be thatA. Kayla consumes 10 bushels of corn.B. Josel consumes 3 bushels of corn.C. Total consumption (Kayla + Josel) is 13 bushels of corn and 2 bushels of wheat.D. Statements A, B, and C are correct.E. None of the above.26

Answered: = Kayla's PPF is defined by 10 = 2Qw +…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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hi can you please answer this thank you

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Step 1

Production Possibility Frontier is a very necessary term for international trade because this curve actually tells us about the capability of the country for producing the products. So Production Possibility Frontier is given a light on the production combination of two goods in a country with available resources and capabilities. So this production possibility curve is actually showing the consumption pattern of two goods of the countries. Now in this case, terms of trade are used and we have to know the term that is it actually shows the price of imported good in exchange of exported goods.

In this case, PPF of two countries are given. From this PPF, we get the opportunity cost and after getting the opportunity cost, we get the comparative advantage theory in those countries.

Now we proceed from the further step.

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