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The figure at right shows production possibilities curves (PPC) for Joe and Samantha. Each of them can spend time 60- making pizzas or chocolate cakes.
The figure at right shows production possibilities curves (PPC) for Joe and Samantha. Each of them can spend time 60- making pizzas or chocolate cakes. Using the information in the figure, calculate the opportunity costs of making pizza 55- and chocolate cake for both Joe and Samantha and then complete the table below. (Round your responses to one decimal place.) 50- 45- Opportunity Cost Opportunity Cost of Pizza of Cake 40- Joe 25 cake(s) 4 pizza(s) Samantha .66 cake(s) 1.5 pizza(s) 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. O 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. (0,25)Joe and Samantha decide to work together and specialize. What will each of them specialize in making? Joe will specialize in making pizza , and Samantha will specialize in making chocolate cake 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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