Will there be any trade between bob and mary

Assignment Help Other Subject

Reference no: EM132151230

Question: Assume that Bob can either type 6 pages per hour or bake 2 cakes. His wife Mary can type 12 pages per hour or bake 4 cakes.

a) What is comparative advantage? Explain.

b) Calculate the comparative advantage of each person in the above example.

c) In this example, do you think that complete specialization is possible? Explain.

d) Will there be any trade between Bob and Mary?

Reference no: EM132151230

Questions Cloud

What is the marginal rate of substitution for the goods : What is the marginal rate of substitution for these goods? State two goods you like to purchase together. (Example: pizza and pop)

Particularly reward implementation issues : Use appropriate theoretical models to critically evaluate the reward problems experienced, particularly reward implementation issues.

What are the possible ways of overcoming the disadvantages : What are educational vouchers and what are the disadvantages of them? What are the possible ways of overcoming those disadvantages?

What are the firm unique resources and capabilities : What are the firm’s unique resources and capabilities?

Will there be any trade between bob and mary : Assume that Bob can either type 6 pages per hour or bake 2 cakes. His wife Mary can type 12 pages per hour or bake 4 cakes.

Does best buy have guided missile corporate culture : Does Best Buy have a guided missile corporate culture, and incubator corporate culture, a family corporate culture, or an Eiffel tower corporate culture?

What price will it be able to charge : Assume that in short-run equilibrium, a particular monopolistically competitive firm charges $12 for each unit of its output and sells 52 units of output.

Python or flowchart model using multiplication : Can you show me the details in setting up a calculator funtion either using Python or Flowchart model using multiplication , add, subtract and minus.

Developing new methods of electronic parts fabrication : Neutron LLC has a new research group that will be developing new methods of electronic parts fabrication. All systems in this new research group

User Account

All Pages