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
110 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 limit as x approaches 2 of (x^2 - 4)/(x^2 - 5x + 6)?
+
Math question: What is the solution to Fermat's Last Theorem for the equation a^n + b^n = c^n, where n>2 and a,b,c are positive integers?
+
Find the value of f(x) for x = 5, where f(x) is a linear function represented by f(x) = x.
+
New questions in Mathematics
1 + 1
A college believes that 22% of applicants to that school have parents who have remarried. How large a sample is needed to estimate the true proportion of students who have parents who have remarried to within 5 percentage points?
a) A tap can supply eight gallons of gasoline daily to each of its 250 customers for 60 days. By how many gallons should each customer's daily supply be reduced so that it can supply 50 more customers for twenty more days?
a bank finds that the balances in its savings accounts are normally distributed with a mean of $500 and a standard deviation off of $40. What is the probability that a randomly selected account has a balance of more than $400?
A consulting company charges a fee of $50 per hour for consulting. If their monthly fixed costs are $1,000 and they want to make a monthly profit of $2,500, how many consulting hours should they bill per month?
(6.2x10^3)(3x10^-6)
x/20*100
7273736363-8
A force of 750 pounds compresses a spring 3 inches from its natural length, which is 15 inches. What will be the work done to compress it 3 inches more?
Substitute a=2 and b=-3 and c=-4 to evaluate 2ac/(-2b^2-a)
1. A pediatric client is prescribed digoxin for congestive heart failure. The dose prescribed is 40 mcg/kg twice daily. The child weighs 33 pounds. What is the dosage in mg to be given per dose? Round to the nearest hundredth. Calculate your answer in mg per dose. Enter numerical value only.____mg
prove that for sets SS, AA, BB, and CC, where AA, BB, and CC are subsets of SS, the following equality holds: (A−B)−C=(A−C)−(B−C)
How do you convert a fraction to a decimal
answer this math question The scale on a map is drawn so that 5.5 inches corresponds to an actual distance of 225 miles. If two cities are 12.75 inches apart on the map, how many miles apart are they? (Round to the nearest tenth) miles apart. The two cities are how many miles apart
Find the orthogonal projection of a point A = (1, 2, -1) onto a line passing through the points Pi = (0, 1, 1) and P2 = (1, 2, 3).
8(x+4) -4=4x-1
Two trains leave stations 294 miles apart at the same time and travel toward each other. One train travels at 95 miles per hour while the other travels at 115 miles per hourHow long will it take for the two trains to meet?
If the area of a circle is 75.7ft2, what is the radius? Give the answer in metres. Round answer to 2 decimal places and enter the units.
x(squared) -8x=0
The domain of the function f(x)=x+7x2−144 is (−∞,), ( ,), and ( , ∞).