Answers to Ch 2 Problems

Principles of Microeconomics + DiscoverEcon code card

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

View Full Document Right Arrow Icon
Answers to Problems: Chapter 2 1. In time it takes Ted to wash a car he can wax one-third of a car. So his opportunity cost of washing one car is one-third of a wax job. In the time it takes Tom to wash a car, he can wax one-half of a car. So his opportunity cost of washing one car is one-half of a wax job. Because Ted’s opportunity cost of washing a car is lower than Tom’s, Ted has a comparative advantage in washing cars. 2. In time it takes Ted to wash a car he can wax three cars. So his opportunity cost of washing one car is three wax jobs. In the time it takes Tom to wash a car, he can wax two cars. So his opportunity cost of washing one car is two wax jobs. Because Tom’s opportunity cost of washing a car is lower than Ted’s, Tom has a comparative advantage in washing cars. 3a. True: since Kyle and Toby face the same opportunity cost of producing a gallon of cider, they cannot gain from specialization and trade. 4. In time it takes Nancy to replace a set of brakes she can complete one-half of a clutch replacement. So her opportunity cost of replacing a set of brakes is one-half of a clutch
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 homework help was uploaded on 02/01/2008 for the course ECON 201 taught by Professor Doyle during the Fall '07 term at James Madison University.

Page1 / 3

Answers to Ch 2 Problems - Answers to Problems: 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