Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hello, I need some help with my macro econ course. Any help is great! Katy Perry and Calvin Harris are lost in the Amazon wilderness.

Hello, I need some help with my macro econ course. Any help is great!\

Katy Perry and Calvin Harris are lost in the Amazon wilderness. The only two edible items they are able to find are bananas and crickets. Calvin is able to catch 40 crickets in a day if he spends his entire day hunting them down. If he picks bananas all day he can collect 10. Katy is much better at picking bananas. If she spends her entire day picking bananas, she can pick 30. If she spends her entire day hunting down crickets, she can find 60.

Both Katy Perry and Calvin Harris can choose to produce any linear combination above.

Who is the low-cost producer of bananas?

A. Katy Perry, because she only has to give up 1/2 Crickets in order to get an additional banana

B. Katy Perry, because she only has to give up 2 Crickets in order to get an additional banana

C. Calvin Harris, because he only has to give up 1/4 Crickets in order to get an additional banana

D. Calvin Harris, because he only has to give up 4 Crickets in order to get an additional banana

E. Katy Perry, because she can produce more bananas than Calvin Harris.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

How The Old World Ended The Anglo-Dutch-American Revolution 1500-1800

Authors: Jonathan Scott

1st Edition

0300249365, 9780300249361

More Books

Students also viewed these Economics questions

Question

1. Avoid conflicts in the relationship

Answered: 1 week ago

Question

1. What will happen in the future

Answered: 1 week ago