Aplia Practice Questions

Aplia Practice Questions - Aplia Practice Questions:...

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Aplia Practice Questions: Chapter Three Iggi and Kurt each own an ice cream shop that sells homemade ice cream on a homemade waffle cone. The table below shows the number of ice cream scoops and waffle cones that Iggi and Kurt produce in an hour. Both Iggi and Kurt work 8 hours per day and spend their time producing ice cream, waffle cones, or a combination of the two. Ice cream (Scoops/hr) Waffle Cones (cones/hr) Iggy 24 8 Kurt 16 4 1. What is Iggy’s Opportunity Cost of producing one waffle cone? 2. What is Kurt\s opportunity cost of producing one waffle cone? 3. Who has an absolute advantage and who has a comparative advantage in the production on waffle cones? 4. Who has an absolute advantage and who has a comparative advantage in the production of ice cream scoops? 5. Suppose that Iggi and Kurt begin trading ice cream and waffle cones with each other. Who will trade what? 6. Suppose that Iggi and Kurt begin trading ice cream and waffle cones with each other. What price of waffle cones, in terms of ice cream scoops, would benefit both Iggi and
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Aplia Practice Questions - Aplia Practice Questions:...

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