Richland: Wheat f. In which product does Prosperity have a comparative advantage? Prosperity: Wine g. Fill in the missing production possibilities data for both countries in the table below. Assume that each country has a total of 10 million workers. RICHLAND'S PRODUCTION POSSIBILITIES (millions of units) A B E Wheat 30 22.5 15 7.5 Wine PROSPERITY'S PRODUCTION POSSIBILITIES (millions of units) A B D E Wheat Wine 10 15 20
Richland: Wheat f. In which product does Prosperity have a comparative advantage? Prosperity: Wine g. Fill in the missing production possibilities data for both countries in the table below. Assume that each country has a total of 10 million workers. RICHLAND'S PRODUCTION POSSIBILITIES (millions of units) A B E Wheat 30 22.5 15 7.5 Wine PROSPERITY'S PRODUCTION POSSIBILITIES (millions of units) A B D E Wheat Wine 10 15 20
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please help with how to solve part G
Transcribed Image Text:Suppose that Richland and Prosperity have the output figures shown in the table below.
AVERAGE PRODUCT PER WORKER
Wheat
Wine
Richland
3 bushels
1 bushels
1 barrels
or
Prosperity
or
2 barrels
Assume that cost and productivity remain constant. Round your answers below to 2 decimal places.
a. What is the opportunity cost of producing one bushel of wheat in Richland?
1 bushel of wheat = [
0.33 barrels of wine.
b. What is the opportunity cost of producing one barrel of wine in Richland?
1 barrel of wine =
3 bushels of wheat.
c. What is the opportunity cost of producing one bushel of wheat in Prosperity?
1 bushel of wheat =
|barrels of wine.
d. What is the opportunity cost of producing one barrel of wine in Prosperity?
1 barrel of wine
0.5 bushels of wheat.
e. In which product does Richland have a comparative advantage?
Richland: Wheat
f. In which product does Prosperity have a comparative advantage?
Prosperity: Wine
g. Fill in the missing production possibilities data for both countries in the table below. Assume that each country has a total of 10
million workers.
RICHLAND'S PRODUCTION POSSIBILITIES
(millions of units)
A
В
D
E
Wheat
30
22.5
15
7.5
Wine
PROSPERITYS PRODUCTION POSSIBILITIES
(millions of units)
A
B
D
Wheat
Wine
5
10
15
20
Suppose that both countries are presently producing combination
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