chapter 2 microeconomics

chapter 2 microeconomics - Steve Siegel 2/5/2008 Chapter 2...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Steve Siegel 2/5/2008 Chapter 2 Homework 2.2. Ted’s opportunity cost of washing a car= 3 wax jobs Tom’s opportunity cost of washing a car= 2 wax jobs Therefore because Tom’s opportunity cost of a washing a car is lower than Ted’s, Tom has comparative advantage over Ted. 2.4. O.C. to replace a clutch for Nancy= 2 pairs of brakes O.C. to replace a set of brakes for Nancy= ½ of a clutch O.C. to replace a clutch for Bill= 3 sets of brakes O.C. to replace a set of brakes for Bill= 1/3 of a clutch Therefore because the opportunity cost to replace the clutch is less for Nancy she has comparative advantage. Inversely Bill has comparative advantage for replacing breaks over Nancy. Nancy has absolute advantage over Bill for replacing the clutch, because she can do the task overall in less time 2.6. a) Unattainable b) Efficient and attainable c) Attainable and inefficient 2.8. An increase in productivity of dresses would not only increase the amount of dresses produced but also the amount of loaves of bread per day. According to the PPC her
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 03/31/2008 for the course ECON 06E:001:SC taught by Professor Nealolitsky during the Spring '08 term at University of Iowa.

Page1 / 2

chapter 2 microeconomics - Steve Siegel 2/5/2008 Chapter 2...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online