Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Economics Expert

Comparative advantage , specialization and gains from trade.

Robin and Terry are Stranded on a deserted island and consume two products, coconuts and fish. In a day, Robin can catch 2 fishes or gather 8 coconuts, and Terry can catch 1 fish or gather 1 coconut.

Assume that each person is initially sely - sufficient. In a six-day week, Robin produces and consumes 32 coconuts and 4 fishes, and Terry produces and consumes 4 coconuts and 2 fishes. Show that specialization and exchange (at a rate of 3 coconuts per fish) allows Robin to consume more coconuts and same number of fish and allows Terry to consume more coconuts and same number of fish. Illustrate the answer with a graph.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M919680

Have any Question? 


Related Questions in Business Economics

Each year since winning control of the house of

Each year since winning control of the House of Representatives in the 2010 election, Tea Party Republicans have argued that we need to immediately initiate sharp reductions in government spending and entitlement program ...

Describe recent financial crises and describe the effect

Describe recent financial crises and describe the effect that destabilized credit, mortgage, derivative, and insurance markets have had on national economies and assess the stabilization policies implemented to address t ...

Suppose in the united states one worker can produce 10 tons

Suppose in the United States, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. In the United Kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. The Un ...

Discuss the concept of a ldquotwilight of white ethnicity

Discuss the concept of a “twilight of white ethnicity". How does this concept match with your experiences of race and ethnicity in the United States? Do you believe “whiteness” will disappear as a racial and/or ethnic ca ...

The 2015 income statement for duffyrsquos pest control

The 2015 income statement for Duffy’s Pest Control shows that depreciation expense was $206 million, EBIT was $522 million, and the tax rate was 30 percent. At the beginning of the year, the balance of gross fixed assets ...

Consider the graph below1 under perfect competition what is

Consider the Graph below: 1. Under perfect competition, what is the equilibrium price? 2. What is the economic profit under monopoly? (in millions) 3. What is the economic profit under perfect competition? (in millions)

Using the guess and verify method you can clearly conclude

Using the guess and verify method, you can clearly conclude that an outcome is consistent with the concept of Nash equilibrium only if: (Explain Reasoning) A. You find that both players are better off in that outcome tha ...

The authors in 8 have suggested multiple electric engine

The authors in [8] have suggested multiple electric engine technique. Two generators are connected with the engine, on the high pressure the starter engine is connected whereas the generator at the low pressure shaft.  I ...

Use the aggregate demandndashaggregate supply model ad-as

Use the aggregate demand–aggregate supply model (AD-AS diagram) to explain how each of the following factors will affect AD or AS as well as the impact upon GDP and general price level. (a) Businessmen are pessimistic ab ...

Explain the following terminologies in economicsspreading

Explain the following terminologies in economics Spreading the overhead. A break-even level of production. The efficiency of mass production? How does the theory of efficient production apply to managers of government bu ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate