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.
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.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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