po Suppose that Paulie and Vinny can each produce ice cream or t-shirts. The table shows the quantity of each good that Paulie and Vinny can produce in 1 hour, respectively, if they devote all of their time and effort into making the good. Round all answers to two decimal places. © Macmillan Learning Paulie Ice cream (cups) T-shirts (quantity) 2.00 17.00 Vinny 7.00 12.00 a. What is Paulie's opportunity cost of producing a cup of ice cream? Paulie's opportunity cost: t-shirts b. What is Vinny's opportunity cost of producing a t-shirt? Vinny's opportunity cost: cups of ice cream c. Paulie has a comparative advantage in t-shirts and Vinny has a comparative advantage in ice cream.
po Suppose that Paulie and Vinny can each produce ice cream or t-shirts. The table shows the quantity of each good that Paulie and Vinny can produce in 1 hour, respectively, if they devote all of their time and effort into making the good. Round all answers to two decimal places. © Macmillan Learning Paulie Ice cream (cups) T-shirts (quantity) 2.00 17.00 Vinny 7.00 12.00 a. What is Paulie's opportunity cost of producing a cup of ice cream? Paulie's opportunity cost: t-shirts b. What is Vinny's opportunity cost of producing a t-shirt? Vinny's opportunity cost: cups of ice cream c. Paulie has a comparative advantage in t-shirts and Vinny has a comparative advantage in ice cream.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:po Suppose that Paulie and Vinny can each produce ice cream or t-shirts. The table shows the quantity of each good that Paulie and
Vinny can produce in 1 hour, respectively, if they devote all of their time and effort into making the good. Round all answers to
two decimal places.
© Macmillan Learning
Paulie
Ice cream (cups)
T-shirts (quantity)
2.00
17.00
Vinny
7.00
12.00
a. What is Paulie's opportunity cost of producing a cup of ice
cream?
Paulie's opportunity cost:
t-shirts
b. What is Vinny's opportunity cost of producing a t-shirt?
Vinny's opportunity cost:
cups of ice cream
c. Paulie has a comparative advantage in
t-shirts
and Vinny has a comparative advantage in
ice cream.
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