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222 a. Suppose that Thak and Bunga each split their time 50/50 in the gathering of nuts and the hunting of meat, and then consume
222 a. Suppose that Thak and Bunga each split their time 50/50 in the gathering of nuts and the hunting of meat, and then consume what they produce. How much do they each consume, and what would be the total amount of nuts and meat produced in a day? b. If Thak and Bunga each specialize according to their comparative advantage, what is the total amount that is produced in a day? c. After specialization, if Thak purchased 10 units of meat from Bunga at a rate of 1:1, how much better off are they compared to (a) where they divided their time and consumed their own production? d. Now suppose that Bunga invents a bow with an arrow, and now can catch 60 units of meat per day. Assuming they still specialize, and that the price of 1 nut is now 2 units of meat, how much better off are they if Thak wants 20 units of meat? e. Given your answer to (d), would Thak oppose Bunga inventing a bow and arrow for hunting, even though he doesn't have a comparative advantage in that activity? Australia+ 36. Suppose that a primitive economy is made up of two people (Thak and Bunga) and two goods are produced: gathered nuts and hunted meat. The table be- low shows the maximum of each output that can be produced by each person. Assume that any linear combination of these two is possible. Maximum Output per Day Nuts Meat Thak Bunga
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