ps1x101_s03_answer - Econ 101 Spring 2003 Wissink PS1-XtraQ...

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Person yak Abe 20 hrs. 4 hrs. 5 0.2 Betty 12 hrs. 3 hrs. 4 0.25 Charlie 15 hrs. 7.5 hrs. 2 0.5 c) Hours Required for one unit of output xylophone MOC of a yak in terms of xyl. MOC of a xyl. in terms of yaks Abe, Betty and Charlie are the only producers/consumers in a small economy. Abe, Betty and Charlie produce and consume only two things: yaks and xylophones. Given 60 hours of work, Abe can produce a maximum of 3 yaks or 15 xylophones, or any combination along a straight line PPF between the two. With 60 hours of work Betty can produce a maximum of 5 yaks or 20 xylophones, or any combination along a straight line PPF between the two. With 60 hours of work Charlie can produce a maximum of 4 yaks or 8 xylophones, or any combination along a straight line PPF between the two. Econ 101 - Spring 2003 - Wissink PS1-XtraQ ANSWERS a) Fill in the missing numbers in the table below: b) If we want to determine who has the comparative advantage in yak production, we need to determine how many xylophones each producer gives up when they produce one yak. You can see that Charlie is
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