Answered step by step
Verified Expert Solution
Question
1 Approved Answer
One Yan and Lin work at the dining halls of two universities. For breakfast, they make dumplings and steamed buns. It takes Yan 1 minute
One Yan and Lin work at the dining halls of two universities. For breakfast, they make dumplings and steamed buns. It takes Yan 1 minute to make a dumpling and 2 minutes to make a steamed bun. Lin needs 2 minutes to make a dumpling and 1 minute to make a steamed bun. They each work 5 hours per day. a) Construct a table to show Yan and Lin's daily production possibilities. Who has an absolute advantage in making dumplings and steamed buns? (4 Marks) b) Construct a table to present Yan and Lin's opportunity costs of making a dumpling and steamed bun. Who has a comparative advantage in making dumplings and steamed buns? (4 Marks) c) Construct a table to show Yan and Lin's production possibilities if they devote their time evenly between making dumplings and steamed buns. (4 Marks) d) Construct a table to show Yan and Lin's production possibilities if Yan spends 3 hours making dumplings and 2 hours making steamed buns, while Lin spends 2 hours making dumplings and 3 hours making steamed buns. (4 Marks) e) Assume the universities now allow Yan and Lin to trade their products based on their work plans described
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