Geppetto and Lewis decide that they would like to trade puzzles and puppets in order to better stock their toy store shelves. The table below compares their production possibilities schedules Production Possibilities Schedules Geppetto Puzzles 100 20 20 Puppets • 6 12 18 • Puzzles 40 32 24 16 10 20 10 24 40 10 50 a. Which producer has the comparative advantage in producing puzzles? Lewis O Geppetto Levis 1 Puppets • Olewis O Geppetto b. Which producer has the comparative advantage in producing puppets? cf both producers decided to trade with each other to stock their toy stores, the terms of trade that would benefit both Geppetto and Lewis (1 puppet xpuzzles) would be between 0080 and 333 puzzles per puppet 0125 and 0.30 puzzles per puppet 0080 and 0.30 puzzles per puppet 0125 and 3.33 puzzles per puppet
Geppetto and Lewis decide that they would like to trade puzzles and puppets in order to better stock their toy store shelves. The table below compares their production possibilities schedules Production Possibilities Schedules Geppetto Puzzles 100 20 20 Puppets • 6 12 18 • Puzzles 40 32 24 16 10 20 10 24 40 10 50 a. Which producer has the comparative advantage in producing puzzles? Lewis O Geppetto Levis 1 Puppets • Olewis O Geppetto b. Which producer has the comparative advantage in producing puppets? cf both producers decided to trade with each other to stock their toy stores, the terms of trade that would benefit both Geppetto and Lewis (1 puppet xpuzzles) would be between 0080 and 333 puzzles per puppet 0125 and 0.30 puzzles per puppet 0080 and 0.30 puzzles per puppet 0125 and 3.33 puzzles per puppet
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter33: International Trade
Section: Chapter Questions
Problem 30P: In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10...
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