Suppose that Costa Rican worker Carlos can produce either 150 pounds of coffee or 1 computer per week, and a second worker, Maria, can produce either 60 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 80 pounds of coffee or 1 computer per week. Like the other two workers, Pedro works 50 weeks per year. Instructions: Enter all values as absolute numbers. a. Carlos' opportunity cost of producing a computer is 60 pounds of coffee, and Pedro's opportunity cost of producing a computer is 150 pounds of coffee, Maria's opportunity cost of producing a computer is 80 pounds of coffee. If all three workers completely specialize in the production of one good, then together they can produce either 14500 pounds of coffee per year. 150 computers or 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 two workers produce computers while only one produces coffee, together they can produce pounds of coffee per year. 1500 pounds of coffee per year. If 100 computers and 50 computers and 7500 b. Assume that world prices are such that 1 computer trades for 100 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 coffee To obtain this number of computers, Carlos will produce V. and Pedro will produce computers V. Maria will produce computers 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 12500 pounds. To obtain this amount of coffee, Carlos will produce coffee 1. Maria will produce computers and Pedro will produce computers C. Assume instead that world prices are such that 1 computer trades for 50 pounds of coffee on international markets and 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 Carlos. Maria and Pedro can consume is coffee To obtain this number of computers, Carlos will produce and Pedro will produce coffee V. Marla will produce coffee If coffee can either be produced domestically or imported from abroad in exchange for Costa Rican computers, then the maximum amount of coffee that Carlos, Maria and Pedro can consume is pounds. To obtain this amount of coffee, Carlos will produce V. and Pedro will produce coffee coffee V. Marja wil produce cofee
Suppose that Costa Rican worker Carlos can produce either 150 pounds of coffee or 1 computer per week, and a second worker, Maria, can produce either 60 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 80 pounds of coffee or 1 computer per week. Like the other two workers, Pedro works 50 weeks per year. Instructions: Enter all values as absolute numbers. a. Carlos' opportunity cost of producing a computer is 60 pounds of coffee, and Pedro's opportunity cost of producing a computer is 150 pounds of coffee, Maria's opportunity cost of producing a computer is 80 pounds of coffee. If all three workers completely specialize in the production of one good, then together they can produce either 14500 pounds of coffee per year. 150 computers or 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 two workers produce computers while only one produces coffee, together they can produce pounds of coffee per year. 1500 pounds of coffee per year. If 100 computers and 50 computers and 7500 b. Assume that world prices are such that 1 computer trades for 100 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 coffee To obtain this number of computers, Carlos will produce V. and Pedro will produce computers V. Maria will produce computers 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 12500 pounds. To obtain this amount of coffee, Carlos will produce coffee 1. Maria will produce computers and Pedro will produce computers C. Assume instead that world prices are such that 1 computer trades for 50 pounds of coffee on international markets and 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 Carlos. Maria and Pedro can consume is coffee To obtain this number of computers, Carlos will produce and Pedro will produce coffee V. Marla will produce coffee If coffee can either be produced domestically or imported from abroad in exchange for Costa Rican computers, then the maximum amount of coffee that Carlos, Maria and Pedro can consume is pounds. To obtain this amount of coffee, Carlos will produce V. and Pedro will produce coffee coffee V. Marja wil produce cofee
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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