Question

uppose there exist two imaginary countries, Congaree and Yosemite. Their labor forces are each capable of supplying four million hours per day that can be used to produce pistachios, chinos, or some combination of the two. The following table shows the amount of pistachios or chinos that can be produced by one hour of labor. Country Pistachios Chinos (Pounds per hour of labor) (Pairs per hour of labor) Congaree 4 16 Yosemite 6 12 Suppose that initially Yosemite uses 1 million hours of labor per day to produce pistachios and 3 million hours per day to produce chinos, while Congaree uses 3 million hours of labor per day to produce pistachios and 1 million hours per day to produce chinos. As a result, Congaree produces 12 million pounds of pistachios and 16 million pairs of chinos, and Yosemite produces 6 million pounds of pistachios and 36 million pairs of chinos. Assume there are no other countries willing to engage in trade, so, in the absence of trade between these two countries, each country consumes the amount of pistachios and chinos it produces. Congaree's opportunity cost of producing 1 pound of pistachios is____ of chinos, and Yosemite's opportunity cost of producing 1 pound of pistachios is ____pairs of chinos. Therefore,______ has a comparative advantage in the production of pistachios, and _____ has a comparative advantage in the production of chinos.

281

likes
1407 views

Answer to a math question uppose there exist two imaginary countries, Congaree and Yosemite. Their labor forces are each capable of supplying four million hours per day that can be used to produce pistachios, chinos, or some combination of the two. The following table shows the amount of pistachios or chinos that can be produced by one hour of labor. Country Pistachios Chinos (Pounds per hour of labor) (Pairs per hour of labor) Congaree 4 16 Yosemite 6 12 Suppose that initially Yosemite uses 1 million hours of labor per day to produce pistachios and 3 million hours per day to produce chinos, while Congaree uses 3 million hours of labor per day to produce pistachios and 1 million hours per day to produce chinos. As a result, Congaree produces 12 million pounds of pistachios and 16 million pairs of chinos, and Yosemite produces 6 million pounds of pistachios and 36 million pairs of chinos. Assume there are no other countries willing to engage in trade, so, in the absence of trade between these two countries, each country consumes the amount of pistachios and chinos it produces. Congaree's opportunity cost of producing 1 pound of pistachios is____ of chinos, and Yosemite's opportunity cost of producing 1 pound of pistachios is ____pairs of chinos. Therefore,______ has a comparative advantage in the production of pistachios, and _____ has a comparative advantage in the production of chinos.

Expert avatar
Velda
4.5
109 Answers
To find out the opportunity cost of producing 1 pound of pistachios, we need to compare the amount of chinos that could have been produced instead.

For Congaree:
The opportunity cost of producing 1 pound of pistachios is the number of chinos that could have been produced with the same amount of labor.
Congaree can produce 4 pounds of pistachios per hour of labor, so the opportunity cost is 16/4 = 4 pairs of chinos per pound of pistachios.

For Yosemite:
Similarly, the opportunity cost of producing 1 pound of pistachios is the number of chinos that could have been produced instead.
Yosemite can produce 6 pounds of pistachios per hour of labor, so the opportunity cost is 12/6 = 2 pairs of chinos per pound of pistachios.

Therefore, we have:
Congaree's opportunity cost of producing 1 pound of pistachios is 4 pairs of chinos.
Yosemite's opportunity cost of producing 1 pound of pistachios is 2 pairs of chinos.

Comparing the opportunity costs, we can see that Yosemite has a lower opportunity cost of producing pistachios (2 pairs of chinos) compared to Congaree (4 pairs of chinos).

Therefore, Yosemite has a comparative advantage in the production of pistachios, and Congaree has a comparative advantage in the production of chinos.

Answer:
Congaree's opportunity cost of producing 1 pound of pistachios is 4 pairs of chinos.
Yosemite's opportunity cost of producing 1 pound of pistachios is 2 pairs of chinos. Therefore, Yosemite has a comparative advantage in the production of pistachios, and Congaree has a comparative advantage in the production of chinos.

Frequently asked questions (FAQs)
What is the value of x in the equation log x = ln x?
+
What is the standard deviation of a set of numbers: 5, 8, 12, 16, 20, 25, 27, 30?
+
What is the sine of an angle in a right triangle if the opposite side measures 5 and the hypotenuse measures 13?
+
New questions in Mathematics
A pump with average discharge of 30L/second irrigate 100m wide and 100m length field area crop for 12 hours. What is an average depth of irrigation in mm unIt?
The patient is prescribed a course of 30 tablets. The tablets are prescribed “1 tablet twice a day”. How many days does a course of medication last?
Calculate the equation of the tangent line ay=sin(x) cos⁡(x)en x=π/2
What’s 20% of 125?
(5u + 6)-(3u+2)=
If the midpoint of point A on the x=3 line and point B on the y=-2 line is C(-2,0), what is the sum of the ordinate of point A and the abscissa of point B?
A person borrows rm 1000 from a bank at an interest rate of 10%. After some time, he pays the bank rm 1900 as full and final settlement of the loan. Estimate the duration of his loan.
4x/2+5x-3/6=7/8-1/4-x
There are four times as many roses as tulips in Claire’s garden. Claire picked half of the number of roses and 140 roses were left in the garden. How many roses and tulips were in the Garden the first?
Suppose the Golf ball market is perfectly competitive and the functions are known: Q = 120 – 2Px – 2Py 0.2I Q = 2Px 40 Where I = Consumers' income ($200) and Py = Price of Good Y (40) Calculate the equilibrium elasticity: a) 1.6 b) -6 c) 6 d) 0.6
The ninth term of a given geometric progression, with reason q , is 1792, and its fourth term is 56. Thus, calculate the fourth term of another geometric progression, whose ratio is q +1 and whose first term is equal to the first term of the first P.G. described.
If X1 and X2 are independent standard normal variables, find P(X1^2 + X2^2 > 2.41)
30y - y . y = 144
Determine the increase of the function y=4x−5 when the argument changes from x1=2 to x2=3
Find each coefficient described. Coefficient of u^2 in expansion of (u - 3)^3
A teacher has 25 red and yellow counters altogether. She has 4 times as many red counters than yellow counters. How many yellow counters does the teacher have?
In a laboratory test, it was found that a certain culture of bacteria develops in a favorable environment, doubling its population every 2 hours. The test started with a population of 100 bacteria. After six hours, it is estimated that the number of bacteria will be:
X^X =49 X=?
Find the equation of a straight line that has slope 3 and passes through the point of (1, 7) . Write the equation of the line in general forms
-1/3x+15=18