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 9 units of good B and 12 units of good A are attainable, unattainable, efficient or inefficient (b) Person 2 can produce 3 units of good B and 4 units of good A per hour. (I) who has absolute advantage oil production of good B? (ii) who has absolute advantage in the production of good A? (iii)calculate the opportunity cost for good B for person 2 (iv) calculate the opportunity cost for good A for person 1 (v) who has the comparative advantage in the production of good B? (vi) who has the comparative advantage in the production of good A ?
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 9 units of good B and 12 units of good A are attainable, unattainable, efficient or inefficient
(b) Person 2 can produce 3 units of good B and 4 units of good A per hour.
(I) who has
(ii) who has absolute advantage in the production of good A?
(iii)calculate the
(iv) calculate the opportunity cost for good A for person 1
(v) who has the
(vi) who has the comparative advantage in the production of good A ?
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