5 Problem 15-04 (algo)Suppose that Costa Rican worker Carlos can produce either 180 pounds of coffee or 1 computer per week, and a second worker,Maria, can produce either 75 pounds of coffee or 1 computer per week. Both Carlos and Maria work 50 weeks per year. A third worker,Pedro, joins the Costa Rican economy. Pedro can produce either 90 pounds of coffee or 1 computer per week. Like the other twoworkers, Pedro works 50 weeks per year.Instructions: Enter all values as whole numbers.pounds of coffee.a. Carlos's opportunity cost of producing a computer isMaria's opportunity cost of producing a computer ispounds of coffee.Pedro's opportunity cost of producing a computer ispounds of coffee.If all three workers completely specialize in the production of one good, then together they can produce eitherpounds of coffee per year.computers orIf the workers instead specialize according to their respective comparative advantage, and with one worker producing computerswhile the other two produces coffee, together they can producecomputers andpounds of coffee per year.computers andIf instead two workers produce computers while only one produces coffee, together they can producepounds of coffee per year.b. Assume that world prices are such that 1 computer trades for 125 pounds of coffee on international markets and that Costa Rica isopen to trade.If computers can either be produced domestically or imported from abroad in exchange for Costa Rican coffee, then the maximumnumber computers that the three workers can consume isTo obtain this number of computers, Carlos will produce(Click to select)✓, Maria will produce (Click to select)✓, and Pedro will produce (Click to select)If coffee can either be produced domestically or imported from abroad in exchange for Costa Rican computers, then the maximumamount of coffee that the three workers can consume ispounds. To obtain this amount of coffee, Carlos will produce If coffee can either be produced domestically or imported from abroad in exchange for Costa Rican computers, then the maximumamount of coffee that the three workers can consume ispounds. To obtain this amount of coffee, Carlos will produceMaria will produce (Click to select)✓, and Pedro will produce (Click to select)(Click to select)c. Assume instead that world prices are such that 1 computer trades for 50 pounds of coffee on international markets and Costa Rica isopen to trade.If computers can either be produced domestically or imported from abroad in exchange for Costa Rican coffee, then the maximumnumber computers that Carlos, Maria and Pedro can consume isMaria will produce (Click to select)To obtain this number of computers, Carlos will produce (Click to select)and Pedro will produce (Click to select)If coffee can either be produced domestically or imported from abroad in exchange for Costa Rican computers, then the maximumamount of coffee that Carlos, Maria, and Pedro can consume ispounds.Maria will produce (Click to select)andTo obtain this amount of coffee, Carlos will produce (Click to select)Pedro will produce (Click to select)

Opportunity Cost is the value of next best alternative sacrificed for choosing the current option.…

Problem 15-04 (algo) Suppose that Costa Rican worker Carlos can produce either 180 pounds of coffee or 1 computer per week, and a second worker, Maria, can produce either 75 pounds of coffee or 1 computer per week. Both Carlos and Maria work 50 weeks per year. A third worker, Pedro, joins the Costa Rican economy. Pedro can produce either 90 pounds of coffee or 1 computer per week. Like the other two workers, Pedro works 50 weeks per year. Instructions: Enter all values as whole numbers. a. Carlos's opportunity cost of producing a computer is pounds of coffee. Maria's opportunity cost of producing a computer is pounds of coffee. Pedro's opportunity cost of producing a computer is pounds of coffee. If all three workers completely specialize in the production of one good, then together they can produce either computers or pounds of coffee per year. If the workers instead specialize according to their respective comparative advantage, and with one worker producing computers while the other two produces coffee, together they can produce computers and pounds of coffee per year. If instead two workers produce computers while only one produces coffee, together they can produce computers and |pounds of coffee per year. b. Assume that world prices are such that 1 computer trades for 125 pounds of coffee on international markets and that Costa Rica is open to trade. If computers can either be produced domestically or imported from abroad in exchange for Costa Rican coffee, then the maximum number computers that the three workers can consume is |(Click to select) To obtain this number of computers, Carlos will produce and Pedro will produce (Click to select) Maria will produce (Click to select) If coffee can either be produced domestically or imported from abroad in exchange for Costa Rican computers, then the maximum amount of coffee that the three workers can consume is | pounds. To obtain this amount of coffee, Carlos will produce

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC