a. Calculate Marcos opportunity cost of producing a cup of pesto sauce. b. Calculate Giorgias opportunity cost
Question:
a. Calculate Marco’s opportunity cost of producing a cup of pesto sauce.
b. Calculate Giorgia’s opportunity cost of producing a cup of pesto sauce.
c. Who has a comparative advantage in producing pesto sauce?
d. If Marco and Giorgia specialize in producing the good in which they have a comparative advantage, and then trade 11 platters of pasta for 4 cups of pesto sauce, who gains from the specialization and trade?
In an hour, Marco can produce 5 cups of pesto sauce or 15 platters of pasta and Giorgia can produce 8 cups of pesto sauce or 20 platters of pasta.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: