Unformatted text preview: First Bakery Second Bakery
Cookies Pies Cookies - Pies 0 18 0 9
10 12 30 ‘ 6
20 6 60 3
30 O 90 0 27. Given the production possibility tables for First and Second Bakeries presented above, we can determine that:
a. Second Bakery has a comparative advantage in the production of pies. b. First Bakery has a comparative advantage 1n the production of both goods.
- ,. - ~ ~ _.- .2, cc; prddmemmoﬁpa either bakery has a comparative advantage. 28. Ginger and Maryann are lost in the jungle, where the only things to eat are mangoes and ﬁsh. Ginger
can gather mangoes faster than Maryann and can. also catch more ﬁsh per hour than can Maryann. Therefore,
a. Ginger should specialize 1n mango gathering because they are more nutritious and Maryann should specialize 1n ﬁshing
b. Ginger should specialize 1n ﬁshing because it is harder than gathering mangoes, and Maryann should 3 cecialize 1n gathering mangoes. 29. The following data represents the production values for two goods, F and G, i.e., (F ,6): (5,0); (4,1);
(3,2); (2,3); (1,4); (0,5). This data is
atcﬁisfStent witha--eoneavepreducﬁonpossibiliﬁe&wrve. V Q b. not consistent with a production possibilities curve. 9] '0
c. Consistent with an upward sloPing production possibilities curve.
. consistent with a convex production possibilities curve. LX \
. 5.925911%): tentmgt'h a linear production possibilities curve. 07 7/ b. not necessanly attainable. c. necessarily an unattainable point. D
(1. possibly an unattainable point. e. One that uses too many resources. ...
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- Spring '07