Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The countries of Boonton and Portlandia each produce two goods: Dishwasher and Freezers. The table below lists the production for each good, for each country

The countries of Boonton and Portlandia each produce two goods: Dishwasher and Freezers. The table below lists the production for each good, for each country per year when each country uses half of their resources to produce each good. Country Production of Dishwashers Production of Freezers Boonton 80 160 Portlandia 48 168 What is the opportuniry cost of producing 1 Dishwashers in Boonton Freezers What is the opportuniry cost of producing 1 Dishwashers in Portlandia Freezers Which country has a comparative advantage in producing Dishwashers? Boonton Portlandia Not enough information Which country has a comparative advantage in producing Freezers? Boonton OPordandia ONor enough information If both countries decide to specialize and trade with each other, what would be the outcome? Consumers in Boonton will not be able to purchase Freezers anymore Producers of Freezers in Portlandia will be lowering production Consumers in Boonton and Portlandia can enjoy more ar lower prices Consumers in Portlandia will be the ones benehting from trade

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

Microeconomics

Authors: Paul Krugman, Robin Wells

4th Edition

1464143870, 9781464143878

More Books

Students also viewed these Economics questions