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Question 2 Tim owns a factory that produces bicycles and unicycles. The table below shows Tim's factory's production possibilities. Bicycles Unicycles (per month) (per month)
Question 2 Tim owns a factory that produces bicycles and unicycles. The table below shows Tim's factory's production possibilities. Bicycles Unicycles (per month) (per month) 200 and 0 100 and 333 50 and 667 0 and 1000 a) Calculate Tim's factory's average opportunity cost of producing an additional unicycle. Show your work. b) If a different factory's average opportunity cost of a unicycle is 1.5 bicycles, who has the comparative advantage in producing unicycles? (Circle one) Tim's Factory Other Factory c) How do you know this
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