Question
A worker in the United States and a worker in China can each produce 1000 pairs of jeans per week. A worker in the United
A worker in the United States and a worker in China can each produce 1000 pairs of jeans per week. A worker in the United States can produce 50 cell phones in a week and a worker in China can produce 100 cell phones in a week.
Part A - If each country attempted to produce both jeans and cell phones, how many jeans and cell phones could each country produce? What would be the total number of jeans and cell phones produced by the two countries combined? I have answered this - each country can produce 1000 jeans per week, totaling 2000 jeans. The US can produce 50 cell phones per week and China can produce 100 cell phones per week, totaling 150 cell phones per week. If you add 2000 to 150, the answer is 2150 total - 2000 jeans and 150 cell phones. This leads into the next parts:
Part B: Calculate the opportunity cost of producing jeans for each country. - show work and explain
Part C: Calculate the opportunity cost of producing cell phones for each country - show work and explain
Part D: Determine how many jeans should be produced by each nation - show work and explain
Part E: If each nation should specialize in producing jeans and cell phones, explain why. Use economic terminology.
Part F: How many total jeans and cell phones will be produced by the two nations combined after specialization?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started