Question 3 Person 1 can allocate her 8-hour day between the production of two goods A and B. Each hour devoted to Good B yields 2 units whereas each hour devoted to Good A produces 4 units.a) State whether 9units of Good B and 12 units of Good A are attainable, unattainable, efficient or inefficient. (State all that applies)b) Person 2, can produce3 units of Good B or 4 units of Good A per hourwho has the absolute advantage in the production of Good B?c) who has the absolute advantage in the production of Good A?d) Calculate the opportunity cost for Good B for Person 2e) Calculate the opportunity cost for Good A for person 1f) who has the comparative advantage in the production of Good B?g) who has the comparative advantage in the production of Good A?

Name: Question 3 Person 1 can allocate her 8-hour day between the production
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Description: Question 3 Person 1 can allocate her 8-hour day between the production of two goods A and B. Each hour devoted to Good B yields 2 units whereas each hour devoted to Good A produces 4 units.a) State whether 9units of Good B and 12 units of Good A are

Person 1 can produce two goods, i.e., A and B Person 1 can produce 4 units of good A per hour Person…

Answered: Person 1 can allocate her 8-hour day…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question 3

Person 1 can allocate her 8-hour day between the production of two goods A and B. Each hour devoted to Good B yields 2 units whereas each hour devoted to Good A produces 4 units.

a) State whether 9units of Good B and 12 units of Good A are attainable, unattainable, efficient or inefficient. (State all that applies)
b) Person 2, can produce3 units of Good B or 4 units of Good A per hour

who has the absolute advantage in the production of Good B?

c) who has the absolute advantage in the production of Good A?
d) Calculate the opportunity cost for Good B for Person 2
e) Calculate the opportunity cost for Good A for person 1
f) who has the comparative advantage in the production of Good B?

g) who has the comparative advantage in the production of Good A?

Definition Video Definition Ability of a country to produce more output with a given level of input or to produce the same level of output with a lower level of input as compared to the other countries. For example, if Country A produces 200 units with the help of 10 units of labor, and Country B produces 300 units with 10 units of labor, Country A has an absolute advantage in the production of the good. Video

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