Washington's Production Possibilities Table (in tons)
Product: A B C D E F
Apples: 40 32 24 16 8 0
Bananas: 0 4 8 12 16 20
Oregon's Prudction Possibilities Table (in tons)
Product: A B C D E F
Apples: 75 60 45 30 15 0
Bananas: 0 5 10 15 20 25
Based on the table above: (I got the first question but how are you finding the answers mathematically? and can you please explain why?
1. Who has the absolute advantage in apples? 75>40 so Oregon
2. Who has the absolute adv. in bananas? 75>20 ??? (NOT SURE)
3. What is Washington's opportunity cost to produce one apple?
4. What is Washington's opportunity cost to produce one banana?
5. What is Oregon's opportunity cost to produce one apple?
6. What is Oregon's opportunity cost to produce one banana?
7. Who has a comparative advantage in apples?
8. Who has a comparative advantage in bananas?
1 answer