Principles Of Microeconomics
7th Edition
ISBN: 9781260111088
Author: Robert H. Frank, Ben Bernanke, Kate Antonovics, Ori Heffetz
Publisher: McGraw-Hill Education
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Chapter 1, Problem 5P
To determine
Explain the reallocate time between the two questions.
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Question 30
Link and Zelda each have 12 hours a week they can spend making costumes and accessories for their cosplay group. Link has been doing this for years and can make a costume piece in 2 hours and an accessory item in 1 hour. Zelda is still learning and can make a costume piece in 3 hours and an accessory item in 2 hours.
The opportunity cost of 1 costume piece for Link in terms of accessory items (i.e. accessory items per costume piece):
Krisha can pick 4 pounds of coffee beans in an hour or gather 2 pounds of nuts. Tom can pick 2 pounds of coffee beans in an hour or gather 4 pounds of nuts. Each works 6 hours per day.
Together, what is the maximum number of pounds of coffee beans the two can pick in a day? What is the maximum number of pounds of nuts the two can gather in a day?
Maximum amount of coffee beans pounds per day
Maximum amount of nuts pounds per day
Now suppose Krisha and Tom were gathering the maximum number of pounds of nuts when they decided that they would like to begin picking 8 pounds of coffee beans per day.
Who would pick the coffee beans?
How many pounds of nuts would they still be able to gather?
Would it be possible for Krisha and Tom in total to gather 26 pounds of nuts and pick 20 pounds of coffee beans each day? If so, how much of each good should each person pick?
The combination of 30 pounds of coffee beans and 12 pounds of nuts per day is
show Krisha and Tom's combined daily PPC.
Suppose that Verania and Josimar are roommates that need to complete some household chores. Vacuuming and washing dishes need to be done. They know from the last time they did these chores that it takes Verania 2 hours to vacuum and 1 hour to wash dishes. It takes Josimar 3 hours to vacuum and 2 hours to wash dishes. Josimar says it does not matter which task each of them performs because Verania is faster at both tasks.
Josimar’s reasoning
a. is wrong. Because Verania has a comparative advantage in washing dishes, she should wash dishes, and Josimar should vacuum.
b. is correct. Because Verania is faster at both tasks, there is no benefit in each volunteer specializing in one task or the other.
c. is wrong. Because Verania has an absolute advantage in both tasks, she should perform both tasks herself.
d. is wrong. Because Josimar has a comparative advantage in washing dishes, he should wash dishes, and Verania should vacuum.
Chapter 1 Solutions
Principles Of Microeconomics
Ch. 1.A - Prob. 1CCCh. 1.A - Prob. 2CCCh. 1.A - Prob. 3CCCh. 1.A - Prob. 4CCCh. 1.A - Prob. 5CCCh. 1.A - Prob. 6CCCh. 1 - Prob. 1RQCh. 1 - Prob. 2RQCh. 1 - Prob. 3RQCh. 1 - Prob. 4RQ
Ch. 1 - Prob. 5RQCh. 1 - Prob. 1PCh. 1 - Prob. 2PCh. 1 - Prob. 3PCh. 1 - Prob. 4PCh. 1 - Prob. 5PCh. 1 - Prob. 6PCh. 1 - Residents of your city are charged a fixed weekly...Ch. 1 - Prob. 8PCh. 1 - For each long-distance call anywhere in the...Ch. 1 - Prob. 10PCh. 1 - Prob. 1.1CCCh. 1 - Prob. 1.2CCCh. 1 - Prob. 1.3CCCh. 1 - Prob. 1.4CCCh. 1 - Prob. 1.5CC
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