Let's say Mike and Johnson manufacture hamburgers and T-shirts. Johnson makes 7 hamburgers or 4 T-shirts per day, while Mike makes 10 hamburgers or 3 T-shirts daily. Assume they have the time to commit to either creating T-shirts or hamburgers. (a) The production possibility curve should be drawn. b) Who enjoys the absolute advantage producing both? c) Whose opportunity cost of producing T-shirts is higher?

Let's say Mike and Johnson manufacture hamburgers and T-shirts. Johnson makes 7 hamburgers or 4 T-shirts per day, while Mike makes 10 hamburgers or 3 T-shirts daily. Assume they have the time to commit to either creating T-shirts or hamburgers. (a) The production possibility curve should be drawn. b) Who enjoys the absolute advantage producing both? c) Whose opportunity cost of producing T-shirts is higher?

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth

Section: Chapter Questions

Problem 7SQ

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