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The figure at right shows production possibilities curves (PPC) for Joe and Samantha. Each of them can spend time making pizzas or chocolate cakes. Using
The figure at right shows production possibilities curves (PPC) for Joe and Samantha. Each of them can spend time making pizzas or chocolate cakes. Using the information in the figure, calculate the opportunity costs of making pizza and chocolate cake for both Joe and Samantha and then complete the table below. (Round your responses to one decimal place.) (Opportunity Cost|Opportunity Cost| of Pizza of Cake .25| cake(s) 4| pizza(s) 66 (s) 5 cake(s 1.5| pizza(s) Samantha Who has the comparative advantage in the production of pizza and chocolate cake? (O A. Neither has a comparative advantage in either good. (O B. Joe has a comparative advantage in both goods. (O C. Samantha has a comparative advantage in both goods. @ D. Samantha has a comparative advantage in pizza, and Joe has a comparative advantage in cake. (O E. Joe has a comparative advantage in pizza, and Samantha has a comparative advantage in cake. Joe and Samantha decide to work together and specialize. What will each of them specialize in making? Joe will specialize in making :l and Samantha will specialize in making v|. Using the figure on the right, PPC where production will oc e and Samantha specialize and indicate the point on the nev pizza chocolate cake neither good Pizzas produced per day per day 45 40 35 60 55 50 45 40 ne 10 15 20 25 30 35 40 Cakes produced per day 45 L0 Who has the comparative advantage in the production of pizza and chocolate cake? 0 5 10 15 20 25 30 35 40 45 Cakes produced per day O A. Neither has a comparative advantage in either good. 60- O B. Joe has a comparative advantage in both goods. 55- O C. Samantha has a comparative advantage in both goods. 50- O D. Samantha has a comparative advantage in pizza, and Joe has a comparative advantage in cake. 45- O E. Joe has a comparative advantage in pizza, and Samantha has a comparative advantage in cake. 40- Joe and Samantha decide to work together and specialize. What will each of them specialize in making? Pizzas produced per day Joe will specialize in making and Samantha will specialize in making Using the figure on the right, draw the new PPC when Joe and Samantha specialize and ew PPC where production will occur. 1.) Using the multipoint curve drawing tool, draw the PPC that results when Joe and Sar chocolate cake your curve 'Joint PPC.' 2.) Using the point drawing tool, locate the point where production will occur when Joe a pizza Label your point 'T." neither good After plotting the final point of your multipoint curve, press the Esc key or Carefully follow the instructions above and only draw the required objects. keyboard to end the line.Joe and Samantha decide to work together and specialize. What will each of them specialize in making? Joe will specialize in making and Samantha will specialize in making Using the figure on the right, draw the new PPC when Joe and Samantha specialize and indicate the point on the new PPC where production will occur. 1.) Using the multipoint curve drawing tool, draw the PPC that results when Joe and Samantha work together. Label your curve 'Joint PPC.' 2.) Using the point drawing tool, locate the point where production will occur when Joe and Samantha specialize. Label your point 'T.' Carefully follow the instructions above and only draw the required objects
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