The two cities of Washingtonia and Jeffersonville produce widgets and gizmos. The opportunity cost of production...

 

Transcribed Image Text:

The two cities of Washingtonia and Jeffersonville produce widgets and gizmos. The opportunity cost of production is constant (meaning the PPF is linear.) Below is the maximum of each good each country could produce if they focused only on a single good. Widgets 1,000 400 Who has absolute advantage in widget production? Gizmo production? Gizmos 250 400 Washingtonia Jeffersonville Who has comparative advantage in widget production? Gizmo production. Be sure to calculate opportunity costs. Suppose that the cities opt to trade. Specifically, they agree on an exchange rate of 2 widgets per 1 gizmo. Each city will only produce the good it has comparative advantage in. Further, Jeffersonville has decided to sell exactly half of the good it has comparative advantage in to Washingtonia. How much of each good will each city end up with? Show your work. The two cities of Washingtonia and Jeffersonville produce widgets and gizmos. The opportunity cost of production is constant (meaning the PPF is linear.) Below is the maximum of each good each country could produce if they focused only on a single good. Widgets 1,000 400 Who has absolute advantage in widget production? Gizmo production? Gizmos 250 400 Washingtonia Jeffersonville Who has comparative advantage in widget production? Gizmo production. Be sure to calculate opportunity costs. Suppose that the cities opt to trade. Specifically, they agree on an exchange rate of 2 widgets per 1 gizmo. Each city will only produce the good it has comparative advantage in. Further, Jeffersonville has decided to sell exactly half of the good it has comparative advantage in to Washingtonia. How much of each good will each city end up with? Show your work. The two cities of Washingtonia and Jeffersonville produce widgets and gizmos. The opportunity cost of production is constant (meaning the PPF is linear.) Below is the maximum of each good each country could produce if they focused only on a single good. Widgets 1,000 400 Who has absolute advantage in widget production? Gizmo production? Gizmos 250 400 Washingtonia Jeffersonville Who has comparative advantage in widget production? Gizmo production. Be sure to calculate opportunity costs. Suppose that the cities opt to trade. Specifically, they agree on an exchange rate of 2 widgets per 1 gizmo. Each city will only produce the good it has comparative advantage in. Further, Jeffersonville has decided to sell exactly half of the good it has comparative advantage in to Washingtonia. How much of each good will each city end up with? Show your work. The two cities of Washingtonia and Jeffersonville produce widgets and gizmos. The opportunity cost of production is constant (meaning the PPF is linear.) Below is the maximum of each good each country could produce if they focused only on a single good. Widgets 1,000 400 Who has absolute advantage in widget production? Gizmo production? Gizmos 250 400 Washingtonia Jeffersonville Who has comparative advantage in widget production? Gizmo production. Be sure to calculate opportunity costs. Suppose that the cities opt to trade. Specifically, they agree on an exchange rate of 2 widgets per 1 gizmo. Each city will only produce the good it has comparative advantage in. Further, Jeffersonville has decided to sell exactly half of the good it has comparative advantage in to Washingtonia. How much of each good will each city end up with? Show your work. The two cities of Washingtonia and Jeffersonville produce widgets and gizmos. The opportunity cost of production is constant (meaning the PPF is linear.) Below is the maximum of each good each country could produce if they focused only on a single good. Widgets 1,000 400 Who has absolute advantage in widget production? Gizmo production? Gizmos 250 400 Washingtonia Jeffersonville Who has comparative advantage in widget production? Gizmo production. Be sure to calculate opportunity costs. Suppose that the cities opt to trade. Specifically, they agree on an exchange rate of 2 widgets per 1 gizmo. Each city will only produce the good it has comparative advantage in. Further, Jeffersonville has decided to sell exactly half of the good it has comparative advantage in to Washingtonia. How much of each good will each city end up with? Show your work. The two cities of Washingtonia and Jeffersonville produce widgets and gizmos. The opportunity cost of production is constant (meaning the PPF is linear.) Below is the maximum of each good each country could produce if they focused only on a single good. Widgets 1,000 400 Who has absolute advantage in widget production? Gizmo production? Gizmos 250 400 Washingtonia Jeffersonville Who has comparative advantage in widget production? Gizmo production. Be sure to calculate opportunity costs. Suppose that the cities opt to trade. Specifically, they agree on an exchange rate of 2 widgets per 1 gizmo. Each city will only produce the good it has comparative advantage in. Further, Jeffersonville has decided to sell exactly half of the good it has comparative advantage in to Washingtonia. How much of each good will each city end up with? Show your work. The two cities of Washingtonia and Jeffersonville produce widgets and gizmos. The opportunity cost of production is constant (meaning the PPF is linear.) Below is the maximum of each good each country could produce if they focused only on a single good. Widgets 1,000 400 Who has absolute advantage in widget production? Gizmo production? Gizmos 250 400 Washingtonia Jeffersonville Who has comparative advantage in widget production? Gizmo production. Be sure to calculate opportunity costs. Suppose that the cities opt to trade. Specifically, they agree on an exchange rate of 2 widgets per 1 gizmo. Each city will only produce the good it has comparative advantage in. Further, Jeffersonville has decided to sell exactly half of the good it has comparative advantage in to Washingtonia. How much of each good will each city end up with? Show your work. The two cities of Washingtonia and Jeffersonville produce widgets and gizmos. The opportunity cost of production is constant (meaning the PPF is linear.) Below is the maximum of each good each country could produce if they focused only on a single good. Widgets 1,000 400 Who has absolute advantage in widget production? Gizmo production? Gizmos 250 400 Washingtonia Jeffersonville Who has comparative advantage in widget production? Gizmo production. Be sure to calculate opportunity costs. Suppose that the cities opt to trade. Specifically, they agree on an exchange rate of 2 widgets per 1 gizmo. Each city will only produce the good it has comparative advantage in. Further, Jeffersonville has decided to sell exactly half of the good it has comparative advantage in to Washingtonia. How much of each good will each city end up with? Show your work. The two cities of Washingtonia and Jeffersonville produce widgets and gizmos. The opportunity cost of production is constant (meaning the PPF is linear.) Below is the maximum of each good each country could produce if they focused only on a single good. Widgets 1,000 400 Who has absolute advantage in widget production? Gizmo production? Gizmos 250 400 Washingtonia Jeffersonville Who has comparative advantage in widget production? Gizmo production. Be sure to calculate opportunity costs. Suppose that the cities opt to trade. Specifically, they agree on an exchange rate of 2 widgets per 1 gizmo. Each city will only produce the good it has comparative advantage in. Further, Jeffersonville has decided to sell exactly half of the good it has comparative advantage in to Washingtonia. How much of each good will each city end up with? Show your work. The two cities of Washingtonia and Jeffersonville produce widgets and gizmos. The opportunity cost of production is constant (meaning the PPF is linear.) Below is the maximum of each good each country could produce if they focused only on a single good. Widgets 1,000 400 Who has absolute advantage in widget production? Gizmo production? Gizmos 250 400 Washingtonia Jeffersonville Who has comparative advantage in widget production? Gizmo production. Be sure to calculate opportunity costs. Suppose that the cities opt to trade. Specifically, they agree on an exchange rate of 2 widgets per 1 gizmo. Each city will only produce the good it has comparative advantage in. Further, Jeffersonville has decided to sell exactly half of the good it has comparative advantage in to Washingtonia. How much of each good will each city end up with? Show your work.

Answer rating: 100% (QA)

Determine who has absolute and comparative advantage in widget and gizmo production Absolute Advantage Washingtonia can produce 1000 widgets and 250 g... View the full answer