# microeconomics

posted by .

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

Corn
Pigs

Mary
200
50

John
80
40

What is Mary’s opportunity cost of producing corn?
What is Mary’s opportunity cost of producing pigs?
What is John’ opportunity cost of producing corn?
What is John’ opportunity cost of producing pigs?
Which person has an absolute advantage in which activities?
Which person has a comparative?
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 corn 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.

• microeconomics -

• microeconomics -

Use your text. I'm in your class by the way. Liliana Montoya!

• microeconomics -

whatever thing a person has to give up to have something else is the opportunity cost.
Mary gave up 50 pigs to get corn so the opp cost is 50 pigs

## Similar Questions

1. ### economics

Suppose that two people, Mary and John each live alone in an isolated region. They each have the same resources available, and they grow corn and raise pigs. If Mary devotes all her resources to grow ...
2. ### MICROECONOMICS

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 …
3. ### economics

if land suitable for growing corn is also suitable for growing soybeans, the discovery that soybean oil prevents cancer will A.have no effect on the cost of growing corn B.reduce the cost of growing corn C.raise the cost of growing …
4. ### Microeconomics

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 …
5. ### Microecinomics

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 …
6. ### Microeconomics

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 …
7. ### econ

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 …
8. ### Microeconomics

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 …
9. ### econimics

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 …
10. ### English

1. They believe that Mary lives in Chicago. 2. Mary is believed to live in Chicago. -------- 3. They think that Mary lives in Chicago. 4. Mary is thought to live in Chicago. -------- 5. They know that Mary lives in Chicago. 6. Mary …

More Similar Questions