Microeconomics
2nd Edition
ISBN: 9781259813337
Author: KARLAN, Dean S., Morduch, Jonathan
Publisher: Mcgraw-hill Education,
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Question
Chapter 2, Problem 9PA
To determine
(a)
To find: who has the
To determine
(b)
To find: who has the absolute advantage at making cupcakes.
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Suppose that Jake and Jill have the ability to pick either apples or strawberries. The following table shows how much they can pick in one hour.
Quantity Picked in One Hour
Pounds of Apples Pounds of Strawberries
Jake
8
4
Jill
10
10
If Jake and Jill each has 10 hours available and each person divides the time equally between picking apples and strawberries, then together they can pick
pounds of apples and
pounds of strawberries.
Now if Jake spends all 10 hours picking apples and Jill spends all 10 hours picking strawberries, then together they can pick
pounds of apples and
pounds of strawberries.
Suppose Mindy and Tulip are roommates. Mindy works part-time at Roberto's and can bring home
four carne asada burritos for free every week. Tulip works part time at Tapioca Express and can bring
home eight steamed pork buns for free every week. Use x to denote the number of burritos, and y
to denote the number of pork buns.
Suppose that Cassie can produce 10 pounds of tuna per hour or 20 pounds of apple per hour, and Samantha can produce 20 pounds of tuna per hour or 10 pounds of apples per hour. Cassie and Samantha both want 80 pounds of tuna and 80 pounds of apple per day.
a. How many hours must Cassie and Samantha work per day if they don't help each
other?
b. Suppose they decide to work together. Now how many hours each day do they have to work?What is the economic explanation for the reduction in hours?
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