Suppose that the amount of time required for the electrician or the carpenter to complete a...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Suppose that the amount of time required for the electrician or the carpenter to complete a job of rewiring or paneling is given by the following table: Rewiring 5 hours 10 hours Paneling 10 hours 15 hours Electrician Carpenter a. Compute the costs of performing each of these tasks for each individual. b. Who has the comparative advantage at rewiring? At paneling? c. Suppose that the more efficient rewirer does all of the rewiring and the more efficient paneler does all of the paneling. Does this trade benefit the electrician? Does it benefit the carpenter? d. Suppose that a different trade is worked out whereby the electrician rewires the carpenter's entire house in exchange for the carpenter's doing 3/5 of the electrician's paneling job. Now how much time does each spend working? Do they each benefit? Note: This problem illustrates the fact that when different parties have different comparative advantages, there is always some trade that will benefit both. However, not any trade will benefit both; the trade must take place at an appropriate relative price. Suppose that the amount of time required for the electrician or the carpenter to complete a job of rewiring or paneling is given by the following table: Rewiring 5 hours 10 hours Paneling 10 hours 15 hours Electrician Carpenter a. Compute the costs of performing each of these tasks for each individual. b. Who has the comparative advantage at rewiring? At paneling? c. Suppose that the more efficient rewirer does all of the rewiring and the more efficient paneler does all of the paneling. Does this trade benefit the electrician? Does it benefit the carpenter? d. Suppose that a different trade is worked out whereby the electrician rewires the carpenter's entire house in exchange for the carpenter's doing 3/5 of the electrician's paneling job. Now how much time does each spend working? Do they each benefit? Note: This problem illustrates the fact that when different parties have different comparative advantages, there is always some trade that will benefit both. However, not any trade will benefit both; the trade must take place at an appropriate relative price.
Expert Answer:
Answer rating: 100% (QA)
a Compute the costs of performing each of these tasks for each individual ANSWER Electrician Rewiring 5 hours 40hour 200 Paneling 10 hours 40hour 400 Carpenter Rewiring 10 hours 20hour 200 Paneling 15 ... View the full answer
Related Book For
Posted Date:
Students also viewed these economics questions
-
Suppose that the amount of time required for the electrician or the carpenter to complete a job of rewiring or paneling is given by the following table: a. Compute the costs of performing each of...
-
The amount of time required to navigate through airport security can vary from city to city. The Excel file titled TSA times. xlxs shows the number of minutes that 60 passengers spent going through...
-
A management consultant found that the amount of time per day spent by executives performing tasks that could be done equally well by subordinates followed a normal distribution with a mean of 2.4...
-
The data in CPU reflect the annual values of the consumer price index for all urban consumers (CPI-U) in the United State over the 54-year period 1965 through 2018, using 1982 through 1986 as the...
-
Now assume all the conditions of the loss settlement clause of the HO apply to the case. Assume that John has $100,000 coverage on his $150,000 house, which has been used for only one-eighth of its...
-
Temperature readings T (in F) were recorded every two hours from midnight to 2:00 pm in Atlanta on a day in June. The time t was measured in hours from midnight. (a) Use the readings to sketch a...
-
Explain which types of apartments would best suit two friends who plan to become roommates.
-
Jefferson Animal Rescue is a private not-for-profit clinic and shelter for abandoned domesticated animals, chiefly dogs and cats. At the end of 2011, the organization had the following account...
-
Sarah Stores has two bond issues outstanding. The first issue has a coupon rate of 9%, matures in 4 years, has a total face value of $10 million, and is quoted at 109% of face value. The second issue...
-
You work in the human resources department of your company helping new employees fill out the necessary paperwork to get their first paycheck. There are a number of decisions that employees must make...
-
Solve triangle ABC. (If an answer does not exist, enter DNE. Round your answers to one decimal place. Below, enter your answers so that A is smaller than A.) 126, c162, 840 ADNE CONE ONE X X Ay ONE...
-
What trends are important in the health industry? What trends are important in the hygiene industry?
-
A 53-kg woman and a 77-kg man stand 10 m apart on frictionless ice. How far from the woman is their CM? Express your answer using two significant figures. CM= Submit Request Answer 4 Part B ? m If...
-
In what ways do emergent health crises and geopolitical tensions, such as pandemics and trade disputes, serve as unforeseen change accelerators, prompting organizations to reassess risk management...
-
A major leaguer hits a baseball so that it leaves the bat at a speed of 31.5 m/s and at an angle of 36.5 above the horizontal. You can ignore air resistance. Calculate the vertical component of the...
-
Research and report on an ethical issue that actually occurred during marketing research as a serial entrepreneur. Include citations to back up the information and give credit to the original sources!
-
Net Income (or Loss) and Retained Earnings The followinginformation is available from the records of Bright Gardens Inc. atthe end of the year: $5,000 Landscaping revenues $29,500 4,500Office equip 2...
-
Consider the following cash flows in Table P5.5. (a) Calculate the payback period for each project. (b) Determine whether it is meaningful to calculate a payback period for project D. (c) Assuming...
-
The desert town of Dry Gulch buys its water from LowTech Inc. LowTech hires residents to walk to the nearest oasis and carry back buckets of water. Thus, the inputs to the production of water are...
-
True or False: If everyone had the same income, substandard housing would disappear.
-
Widgets are produced by a competitive industry and sold for $5 apiece. The government requires each widget firm to have a license, and charges the highest license fee firms are willing to pay. If the...
-
Distinguish between the face value and the issue price of a bond. When are they the same? When are they different? Explain.
-
Explain the impact on interest of a bond discount and bond premium to (a) the issuer and (b) the investor.
-
Assume that a \(\$ 1,000,8 \%\) (payable semiannually), 10 -year bond is sold at a market rate of \(6 \%\). Explain how to compute the price of this bond.
Study smarter with the SolutionInn App