QUESTION 19
Consider the following production possibilities frontier for Debbie and Melissa
...
Mathematics, 17.09.2021 22:40 SpittingFatLama
QUESTION 19
Consider the following production possibilities frontier for Debbie and Melissa
Debble
Donuts
Donuts
Melissa
T
H
w
Z
Coffee
Coffee
Moreover assume that:
T-213 and W-349
H-166 and 2-126
Under no trade Debbie Will devote 27% of her time collecting coffee and Melissa will devote 39% of her time collecting coffee.
Under trade each of them specializes in the production of the good in which they have a comparative advantage (.e. they will only produce the one good in which they have a comparative
advantage)
How much more is the world production coffee under trade ? (note: input only a number)
Answers: 3
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