EddieGuitars322824201612840Tubas012345678DaveGuitars2520151050Tubas0123453530252015105030252015105000212436485106Eddie and Dave both produce guitars and tubas. They produce a given amountof each per month as seen in the tables above. Given the productionpossibilities curves of each individual above, answer the following:Who has the comparative advantage in the production of tubas?Eddie, because his opportunity cost of producing a tuba is 0.75 guitars tubascompared to Dave's opportunity cost of producing a tuba guitar of0.25 guitarsDave, because his opportunity cost of producing a tubas is 5 guitarscompared to Eddie's opportunity cost of producing a tuba of 4 guitarsDave, because he is able to produce a lower number of tubas compared toEddieDave, because he is able to produce a lower number of guitars compared toEddieEddie, because his opportunity cost of producing a tuba is 4 guitarscompared to Dave's opportunity cost of producing a tuba of 5 guitarsEddie, because he is able to produce a greater number of tubas compared to

Given information Eddie and Dave both produce guitars and tubas. Eddie can produce either 32…

Answered: Who has the comparative advantage in…

Who has the comparative advantage in the production of tubas? Eddie, because his opportunity cost of producing a tuba is 0.75 g compared to Dave's opportunity cost of producing a tuba guitar

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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CHOOSE ONLY ONE OPTION FROM EACH PLEASE. Be aware that the numbers in the table reveal the labour HOURS needed to produce ONE unit of the good.
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Two neighboring island nations, Seychelles and Mauritius, produce iPad's, coffee, or a combination of both. Suppose that they each have 4 million labor hours available per week for production. The following table gives the amount of each product that can be produced using one hour of labor: Country Mauritius Seychelles Mauritius' opportunity cost of produing 1 iPad is iPads (per hour of labor) 12 of coffee. Therefore, 8 Initially, suppose Mauritius uses 1 million hours per week to produce iPads and 3 million hours per week to produce coffee, while Seycheles uses 3 million hours of labor per week to produce iPads and 1 million hours per week to produce coffee. Consequently, Mauritius produces 12 million iPads and 72 million pounds of coffee, and Seychelles produces 24 million iPads and 32 million pounds of coffee. Assume there are no other countries willing to trade with them. So, if Mauritius and Seychelles don't trade with each other, they can only consume what they can produce using…
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