Now, complete the combined production possibilities tables below where Bruce and

Question

Now, complete the combined production possibilities tables below where Bruce and Zoe (1) jointly produce an equal amount of Sandwiches and (2) jointly produce Sandwiches along the lines of their comparative advantage

The following is the production possibilities table for Bruce and Zoe Now, complete the combined production possibilities tables below where Bruce and Zoe (1) jointly produce an equal amount of Sandwiches and (2) jointly produce Sandwiches along the lines of their comparative advantage

Explanation / Answer

Combined PPF (equal Amounts) 8 0 6 7 4 14 2 21 0 28 Combined PPF (Specialization) 8 0 6 8 4 16 2 22 0 28 To figure out the first column where they have equal production of sandwiches, you just divide the number of total sandwiches produced by 2 and look to the chart to see how many pies each person can produce with that number of sandwiches and add those two numbers. So if 6 total sandwiches are produced you check how many pies Bruce and Zoe can each produce while making three sandwiches. Bruce can produce 3 pies and Zoe can produce 4 pies while making 3 sandwiches. So 3 + 4 = 7 and you have the number of pies made. For the second column where they rely on their specialization to make the most pies you must observe which person makes more pies. Because Zoe can make 4 pies in the time it takes her to make one sandwich and Bruce can only make 3 pies in the time it take him to make one sandwich, Zoe is the better pie maker. You'll want her to make the most pies and Bruce to make the most sandwiches possible but they can only make 4 sandwiches per day each. So if 6 total sandwiches are produce you'll want Bruce to make 4 sandwiches and no pies while Zoe makes 2 sandwiches and 8 pies.

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---