Clark and Clester live in the beautiful town of Pagudpud, Ilocos Norte. They own a small business in which they make earrings and necklaces and sell them to the people who visit the beach. Clark can make 18 earrings or 6 necklaces per hour. Clester is a little bit slower and can make only 15 earrings or 3 necklaces in an hour.

a. For Clark what is the opportunity cost of a necklace? do not answer in sentence. direct like 1 ice cream......so with the others letters
b. For Clester what is the opportunity cost of a necklace?
c. Who has the comparative advantage in the production of necklace?
d. Who has the comparative advantage in the production of earrings?
e. Assume that Clark works one hour per day for six days in a week in the business, and if Clark is in the business of his own, give the possible combinations of necklaces and earrings that he can do for a week. Graph these possible combination on a bond paper, format of your combination should be 0/0,0/0,0/0

f. Assume that Clester works one hour per day for six days in a week in the business, and if Clester is in the business of his own, give the possible combinations of necklaces and earrings that he can do for a week. Graph these possible combination on a bond paper, format of your combination should be 0/0,0/0,0/0

Answer rating: 100% (QA)

a For Clarke the opportunity cost of a necklace is the number of earrings given up and that is ... View the full answer