onsider an economy with two producers, Sidney and Connor. Each allocates 8 hours per day between the production of chocolate and bananas. Given 8 hours of labour, Sidney can produce 80kg of chocolate or 16kg of bananas. Connor can produce either 2kg of chocolate or 4kg of bananas per hour. A) No Trade i) In separate diagrams, show the production possibilities frontier for both Sidney and Connor. Put bananas on the horizontal axis and chocolate on the vertical axis. ii)What is the opportunity cost of bananas for both Sidney and Connor if there is no trade?
Consider an economy with two producers, Sidney and Connor. Each allocates 8 hours per day between the production of chocolate and bananas. Given 8 hours of labour, Sidney can produce 80kg of chocolate or 16kg of bananas. Connor can produce either 2kg of chocolate or 4kg of bananas per hour.
A) No Trade
i) In separate diagrams, show the production possibilities frontier for both Sidney and Connor. Put bananas on the horizontal axis and chocolate on the vertical axis.
ii)What is the
Given information:
Total labor hours =8
In 8 hours, Sidney can produce 80 kg of chocolate or 16 kg of bananas. Also, Connor can produce either 2Kg of chocolates or 4 kg of bananas per hour.
The production possibility curve shows the combination of chocolate and bananas produced in 8 hours of labor.
Bananas on the horizontal axis and chocolate on the vertical axis.
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