This question's due date has already passed. You may post a tutorial, but there's no guarantee that the original asker will purchase the tutorial. But other people might!

Question

# \$1.00Suppose that two people, Michelle and James each live alone in an isolated region. They each have the same resources ava

Asked by :

Rating :No Rating
Questions Asked: 87
Tutorials Posted: 5,
Earned: \$32.80

Q:
Unit 1 Individual Project
Deliverable Length: 2–3 pages
Details:

Suppose that two people, Michelle and James each live alone in an isolated
region. They each have the same resources available, and they grow potatoes and
raise chickens.  If Michelle devotes all her resources to growing potatoes, she
can raise 200 pounds of potatoes per year. If she devotes all her resources to
raising chickens, she can raise 50 chickens per year. (If she apportions some
resources to each, then she can produce any linear combination of chickens and
potatoes that lies between those extreme points.  If James devotes all his
resources to growing potatoes, he can raise 80 pounds of potatoes per year. If
he devotes all his resources to raising chickens, he can raise 40 chickens per
year. (If he apportions some resources to each, then he can produce any linear
combination of chickens and potatoes that lies between those extreme
points.)

 Potatoes Chickens Michelle 200 50 James 80 40

• What is Michelle’s
opportunity cost of producing potatoes?

• What is Michelle’s
opportunity cost of producing chickens?

• What is James’ opportunity
cost of producing potatoes?

• What is James’ opportunity
cost of producing chickens?

• Which person has an
absolute advantage in which activities?

• Which person
has comparative advantage in potatoes?

• Which person
has comparative advantage in chicken?

• Suppose that they are
thinking of each specializing completely in the area in which they have a
comparative advantage, and then trading at a rate of 2.5 pounds of potatoes for
1 chicken, would they each be better off? Explain.

• How would you extend the
above narrative to businesses, society as a whole or nations? Explain.

Available Tutorials to this Question

\$28.00
A+ Graded Paper 5 Pages (Opportunity Costs A Two-Producer Case Study)
• This tutorial hasn't been purchased yet.
• Posted on Jan 11, 2013 at 8:25:39PM
Posted by :

Rating (149):B+
Questions Asked: 6
Tutorials Posted: 3609,
Earned: \$15,723.67

A:
Preview: ... ached       Attached ...

The full tutorial is about 29 words long plus attachments.

Attachments:
Michelle and James.doc (45K) (Preview)

\$6.00
Production and Perfect Competition - A++
• This tutorial hasn't been purchased yet.
• Posted on Jan. 12, 2013 at 07:13:43AM
Posted by :

Rating (71):B+
Questions Asked: 6
Tutorials Posted: 1182,
Earned: \$3,021.71

A:
Preview: ... fect C ...

The full tutorial is about 4 words long plus attachments.

Attachments:
Production and Perfect Competition.doc (22K) (Preview)