a. Calculate Fadis opportunity cost of a baklava and Hanias opportunity cost of a baklava. b. If

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a. Calculate Fadi’s opportunity cost of a baklava and Hania’s opportunity cost of a baklava.

b. If each spends 30 minutes of each hour baking baklavas and 30 minutes producing chocolate bars, how many baklavas and chocolate bars does each produce?

c. Who has a comparative advantage in producing

(i) baklavas and (ii) chocolate bars?

Fadi can produce 10 baklavas (a Turkish pastry) or 250 bars of chocolate an hour. Hania can produce 30 baklavas or 90 bars of chocolate an hour.

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Economics

ISBN: 9781292433639

14th Global Edition

Authors: Michael Parkin

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