The table below presents the production possibilities schedules for the cities of Venice and Florence, each of which produces pasta and wine. Production Possibilities Schedules for Venice and Florence Venice Florence Pasta (pounds) Wine (bottles) Pasta (pounds) Wine (bottles) 40 0 50 0 20 0 20 40 25 0 100 200 Instructions: In parts b and d, round your answers to two decimal places. a. What is Venice's opportunity cost of producing one pound of pasta? 4 bottle(s) of wine 6 bottle(s) of wine 0.25 bottle(s) of wine 1 bottle(s) of wine b. What is Venice's opportunity cost of producing one bottle of wine? pound(s) of pasta c. What is Florence's opportunity cost of producing one pound of pasta? 6 bottle(s) of wine 0.25 bottle(s) of wine 1 bottle(s) of wine 4 bottle(s) of wine d. What is Florence's opportunity cost of producing one bottle of wine? pound(s) of pasta e. (Click to select) has the comparative advantage in producing pasta and (Click to select) has the comparative advantage in producing wine.

ECON MICRO
5th Edition
ISBN:9781337000536
Author:William A. McEachern
Publisher:William A. McEachern
Chapter2: Economic Tools And Economic Systems
Section: Chapter Questions
Problem 3.5P
Question
Solve all parts with correct and proper calculation and explanation
The table below presents the production possibilities schedules for the cities of Venice and Florence, each of which produces pasta
and wine.
Production Possibilities Schedules for Venice and Florence
Venice
Florence
Pasta
(pounds)
Wine
(bottles)
Pasta
(pounds)
Wine
(bottles)
40
0
50
0
20
0
20
40
25
0
100
200
Instructions: In parts b and d, round your answers to two decimal places.
a. What is Venice's opportunity cost of producing one pound of pasta?
4 bottle(s) of wine
6 bottle(s) of wine
0.25 bottle(s) of wine
1 bottle(s) of wine
b. What is Venice's opportunity cost of producing one bottle of wine?
pound(s) of pasta
c. What is Florence's opportunity cost of producing one pound of pasta?
6 bottle(s) of wine
0.25 bottle(s) of wine
1 bottle(s) of wine
4 bottle(s) of wine
d. What is Florence's opportunity cost of producing one bottle of wine?
pound(s) of pasta
e. (Click to select) has the comparative advantage in producing pasta and (Click to select) has the comparative advantage in
producing wine.
Transcribed Image Text:The table below presents the production possibilities schedules for the cities of Venice and Florence, each of which produces pasta and wine. Production Possibilities Schedules for Venice and Florence Venice Florence Pasta (pounds) Wine (bottles) Pasta (pounds) Wine (bottles) 40 0 50 0 20 0 20 40 25 0 100 200 Instructions: In parts b and d, round your answers to two decimal places. a. What is Venice's opportunity cost of producing one pound of pasta? 4 bottle(s) of wine 6 bottle(s) of wine 0.25 bottle(s) of wine 1 bottle(s) of wine b. What is Venice's opportunity cost of producing one bottle of wine? pound(s) of pasta c. What is Florence's opportunity cost of producing one pound of pasta? 6 bottle(s) of wine 0.25 bottle(s) of wine 1 bottle(s) of wine 4 bottle(s) of wine d. What is Florence's opportunity cost of producing one bottle of wine? pound(s) of pasta e. (Click to select) has the comparative advantage in producing pasta and (Click to select) has the comparative advantage in producing wine.
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