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.
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likesAnswer 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.
4.5For 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.