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 result of multiplying vector A (3i + 5j) by vector B (-2i + 4j)?
+
How many ways can a committee be formed with 5 members chosen from a group of 10?
+
What is the limit of (2x^3 - 4x^2 + 5x - 1) / (x^2 - 3x + 2) as x approaches 2?
+
New questions in Mathematics
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?
3(2+x)-2(2x+6)=20-4x
Investing equal amounts of money into each of five business ventures Let's say you plan. 20 to choose from If there are initiatives, how many different ones among 20 initiatives? five startups can be selected?
For a temperature range between -3 degrees Celsius to 5 degrees Celsius, what is the temperature range in degrees Farenheight
Determine the equations of the recipes that pass through the following pairs of points P1 (2;-1) and p2 (4;-1)
Consider numbers from 1 to 2023. We delete 3 consecutive numbers so, that the avarage of the left numbers is a whole number
Consider numbers from 1 to 2023. We want to delete 3 consecutive, so that the avarage of the left numbers is a whole number. How do we do that
find f(x) for f'(x)=3x+7
Solve equations by equalization method X-8=-2y 2x+y=7
Find the minimum value of the function y = -4 x3 + 60 x2 -252 x + 8 for values of x between x = 0 and x = 9 Enter the value of the function, not the value of x
When taking a test with m closed answers, a student knows the correct answer with probability p, otherwise he chooses one of the possible answers at random. What is the probability that the student knows the correct answer given that he answered the question correctly.
Log0
In an economy with C= 10+0.8 Yd ; I= 20+0.1Y ; G= 100 ; X= 20 ; M=10+0.2Y ; T=-10+0.2Y and R= 10, when knew that Yd= Y-T+R. How much is the budget? A. -23.18 B. -28.13 C. -13.28 D. -32.18
A 20,000 kg school bus is moving at 30 km per hour on a straight road. At that moment, it applies the brakes until it comes to a complete stop after 15 seconds. Calculate the acceleration and the force acting on the body.
94 divided by 8.75
A factory produces glass for windows. The thickness X of an arbitrarily selected pane of glass is assumed to be Normally distributed with expectation μ = 4.10 and standard deviation σ = 0.04. Expectation and Standard deviation is measured in millimeters. What is the probability that an arbitrary route has a thickness less than 4.00 mm?
Farm Grown, Inc., produces cases of perishable food products. Each case contains an assortment of vegetables and other farm products. Each case costs $5 and sells for $15. If there are any not sold by the end of the day, they are sold to a large food processing company for $3 a case. The probability that daily demand will be 100 cases is 0.30, the probability that daily demand will be 200 cases is 0.40, and the probability that daily demand will be 300 cases is 0.30. Farm Grown has a policy of always satisfying customer demands. If its own supply of cases is less than the demand, it buys the necessary vegetables from a competitor. The estimated cost of doing this is $16 per case. (a) Draw a decision table for this problem (b) What do you recommend?
2.3 X 0.8
How many digits are there in Hindu-Arabic form of numeral 26 × 1011
Let f(x)=-1/2x+5 evaluate f(-6)