Problem $2\mathrm{.}1$

Use the equation: $A(x)+B(y)=C,$ where $A,B,$ and $C$ are constants. Solve for:

$($a$)$ The equation above in terms of the $y-$variable.

$($b$)$ The $y-$intercept.

$($c$)$ The $x-$intercept.

$($d$)$ What is the slope?

Problem $2\mathrm{.}2$

United States and China each have $10,000$ hours of labor per month.

The U$.$S$.$ can produce $1$ cellphone in $2$ hours and can produce $1$ car in $3$ hours.

China can produce $1$ cellphone in $3$ hours and can produce $1$ car in $4$ hours.

Ex: Argentina can produce $1$ table in $10$ hours.

$=>1$ table $*10,000hr\frac{s}{10}hrs=1,000$ tables

$($a$)$ How much could the U$.$S$.$ produce if they specialized in producing cellphones?

$($b$)$ How much could the U$.$S$.$ produce if they specialized in producing cars?

$($c$)$ How much could China produce if they specialized in producing cellphones?

$($d$)$ How much could China produce if they specialized in producing cars?

$($e$)$ Use the production ratios to determine who has the comparative advantage in producing cars?

Problem $2\mathrm{.}3$

Tom and Sam are a hand$-$crafty couple. They recently made a deal with a small nearby grocery store called Trading$-$With$-$Joe. Every week they fill in two orders, decorative pots $(P)$ and jelly jars $(J).$ Since both goods retail and cost the same amount, their goal is to produce as much as possible.

Tom can either produce $35$ pots per day or $65$ jars per day.

Sam can either produce $45$ pots per day or $85$ jars per day.

$($a$)$ Who has an absolute advantage in producing pots?

$($b$)$ Who has an absolute advantage in producing jelly?

$($c$)$ Who has comparative advantage in producing pots?

$($d$)$ Who should produce what first?

Tom works $6$ days a week. Where: $6=L_P+L_J$

His production capabilities are: $P=35(L_P)$ and $J=65(L_J)$

$($e$)$ How much would Tom produce if he spent all $6$ days only producing pots and jars individually?

$($f$)$ Solve, graph, and label Tom's production frontier equation in terms of pots, or make $P$ as your $y-$axis.