QUESTION 8 ppel and Samseng were 2 rival companies in producing smartphones but both have recently been bought by a billionaire, Eelon Mask. Appel is able to produce 500 phone processors in one day or assemble 600 phones in one day. Samseng is able to produce 430 hone processors in one day or assemble 550 phones in one day. Eelon wants both companies to specialise so he can maximise their utput. elect the item from the list provided to make the following statements true. - - ✓ Appel has absolute advantage in ✓ Opportunity cost of Samseng assembling 1 phone is in assembling phones. ✓ Samseng has 1. producing 1.20 phone processors 2. absolute advantage 3. both producing phone processors and assembling phones 4. producing 0.78 phone processors 5. producing 0.83 phone processors 6. neither absolute nor comparative advantage 7. neither producing phone processors nor assembling phones 8. comparative advantage 9. assembling phones 10. producing 1.28 phone processors 11. producing phone processors 12, both absolute and comparative advantage

QUESTION 8 ppel and Samseng were 2 rival companies in producing smartphones but both have recently been bought by a billionaire, Eelon Mask. Appel is able to produce 500 phone processors in one day or assemble 600 phones in one day. Samseng is able to produce 430 hone processors in one day or assemble 550 phones in one day. Eelon wants both companies to specialise so he can maximise their utput. elect the item from the list provided to make the following statements true. - - ✓ Appel has absolute advantage in ✓ Opportunity cost of Samseng assembling 1 phone is in assembling phones. ✓ Samseng has 1. producing 1.20 phone processors 2. absolute advantage 3. both producing phone processors and assembling phones 4. producing 0.78 phone processors 5. producing 0.83 phone processors 6. neither absolute nor comparative advantage 7. neither producing phone processors nor assembling phones 8. comparative advantage 9. assembling phones 10. producing 1.28 phone processors 11. producing phone processors 12, both absolute and comparative advantage

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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