Hi again!!
11)Assume we have two producers, May and Cliff. In one hour May can
produce 8 bushels of wheat and in one hour May can produce 8 bushels
of corn. In one hour Cliff can produce 20 bushels of wheat and in
one hour Cliff can produce 10 bushels of corn. Assume that May would
like to consume 100 more units of wheat. Assume May is going to
produce corn and exchange it with Cliff in exchange for wheat. What
is the least amount of corn that she could produce and get 100 bushels
of wheat in exchange? (for such a trade, Cliff would be no better or
worse off.)
b)50 bushels of wheat.
For Cliff the cost to produce 1 bushel of corn is 2 bushels of wheat.
Then May must offer in exchange at least 50 bushels of corn to
exchange with Cliff to receive 100 bushels of wheat in exchange for
it.
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12)Assume we have two producers, May and Cliff. In one hour May can
produce 8 bushels of wheat and in one hour May can produce 8 bushels
of corn. In one hour Cliff can produce 20 bushels of wheat and in one
hour Cliff can produce 10 bushels of corn. Assume that Cliff would
like to consume 100 more bushels of corn. If Cliff decides to
produce the corn on his own how much will this cost him?
a)200 bushels of wheat.
For Cliff the cost to produce 1 bushel of corn is 2 bushels of wheat,
then if he decide to produce 100 extra bushels of corn, it will cost
to him
100 x 2 bushels of wheat = 200 bushels of wheat.
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13)Assume we have two producers, May and CLiff. In one hour May can
produce 8 bushels of wheat and in one hour May can produce 8 bushels
of corn. In one hour Cliff can produce 20 bushels of wheat and in one
hour Cliff can produce 10 bushels of corn. Assume that Cliff would
like to consume 100 more bushels of corn. Assume Cliff is going to
produce wheat and trade it with May in return for corn. What is the
least amount of wheat that Cliff could produce and get 100 bushels of
corn in exchange? (for such a trade May would be not better or worse
off.)
c)100 bushels of wheat.
For May the cost to produce 1 bushel of wheat is 1 bushel of corn.
Then Cliff must offer at least 100 bushels of wheat to trade it with
May in order to receive in exchange for it 100 bushels of corn from
May.
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I hope this helps you. Feel free to request for any clarification
needed for this answer.
Regards.
livioflores-ga |