Maria and Shayla produce pickles and cheese. Maria's production function is Op 424-40c Shayla's production function is Op 480-30c These two people are currently not trading. Maria is currentily producing and consuming 200 pickles and 56 cheeses. Shayla is currently producng and consuming 210 pickles and 90 cheeses. Then these two people specialize and trade based on comparative advantage The ewma of trade are 220 pickles for 67 cheeses What are the gains from trade for Shayla in terms of CHEESES?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Maria and Shayla produce pickles and cheese.
Maria's production function is Qp = 424 - 40c
Shayla's production function is Op 480 - 30c
These two people are currently not trading. Maria is currently producing and consuming 200 pickles and 56 cheeses. Shayla is currently producing
and consuming 210 pickles and 90 cheeses. Then these two people specialize and trade based on comparative advantage The terma of trade are
220 pickles for 67 cheeses. What are the gains from trade for Shayla in terms of CHEESES?
Transcribed Image Text:Maria and Shayla produce pickles and cheese. Maria's production function is Qp = 424 - 40c Shayla's production function is Op 480 - 30c These two people are currently not trading. Maria is currently producing and consuming 200 pickles and 56 cheeses. Shayla is currently producing and consuming 210 pickles and 90 cheeses. Then these two people specialize and trade based on comparative advantage The terma of trade are 220 pickles for 67 cheeses. What are the gains from trade for Shayla in terms of CHEESES?
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