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UI LUI. 3. In the ancient country of Roma, only two goods, spaghetti and meatballs, are produced. There are two tribes in Roma, the Tivoli

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UI LUI. 3. In the ancient country of Roma, only two goods, spaghetti and meatballs, are produced. There are two tribes in Roma, the Tivoli and the Frivoli. By themselves, the Tivoli each month can produce either 30 pounds of spaghetti and no meatballs, or 50 pounds of meatballs and no spaghetti, or any combination in between. The Frivoli, by themselves, each month can produce 40 pounds of spaghetti and no meatballs, or 30 pounds of meatballs and no spaghetti, or any com- bination in between. a. Assume that all production possibility frontiers are straight lines. Draw one diagram showing the monthly production possibility frontier for the Tivoli and another showing the monthly production pos- sibility frontier for the Frivoli. Show how you calcu- lated them. b. Which tribe has the comparative advantage in spa- ghetti production? In meatball production? In A.D. 100 the Frivoli discover a new technique for making meatballs that doubles the quantity of meat- balls they can produce each month.blu

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