Question;7. If;PPF1 in the preceding figure is the relevant production;possibilities frontier, then which point(s) represent efficiency? Explain your;answer.;8. Tina;can produce any of the following combinations of goods X and Y: (a) 100X and;0Y, (b) 50X and 25Y, and (c) 0X and 50Y. David can produce any of the following;combinations of goods X and Y: (a) 50X and 0Y, (b) 25X and 40Y, and (c) 0X and;80Y. Who has a comparative advantage in the production of good X? of good Y?;Explain your answer.;9. Using;the data in Problem 8, prove that both Tina and David can be made better off;through specialization and trade.
Paper#54986 | Written in 18-Jul-2015Price : $22