Oliver's PPC crosses the x-axis at (3,0) and the y-axis at (0,3). Claire's PPC crosses the...

Oliver's PPC crosses the x-axis at (3,0) and the y-axis at (0,3). Claire's PPC crosses the x-axis at (6,0) and the y-axis at (0,12). Group of answer choices

Oliver has a comparative advantage in producing the good represented on the x-axis.

Claire has nothing to gain to trade with Oliver. Claire has an absolute advantage in both goods.

The opportunity cost of producing the good on the x-axis is greater for Oliver than for Claire.

Expert Solution

In case of Oliver, PPC crosses x-axis at (3,0) and y-axis at (0,3).

So, Maximum production of good shown on x=3

Maximum production of good shown on y=3

In case of Claire, PPC crosses x-axis at (6,0) and y-axis at (12,0).

So,

Maximum production of good shown on x=6

Maximum production of good shown on y=12

Clearly Claire has absolute advantage in production of both goods as it can produce more as compared to Olver.

Opportunity cost of good shown on x-axis in cases of Oliver=3/3=1 unit of y

Opportunity cost of good shown on x-axis in cases of Claire=12/6=2 unit of y

Oliver has a lower opportnuity cost in case of good on x. It means that Oliver has a comparative advantage in producing good shown on x-axis.

Trade will be beneficial if specialization is done on the basis of comparative advantage.

So, correct option is

Oliver has a comparative advantage in producing the good represented on the x-axis.

Rahul Sunny answered 8 months ago

Curvilinear integral of the function f (x, y) = x2 + y2 on a (3,0) centered...

Curvilinear integral of the function f (x, y) = x2 + y2 on a (3,0) centered and 3 radius circle. a)Calculate the curvilinear integral by expressing the curve in parametrically. b)Calculate the curvilinear integral by expressing the curve in polar coordinates. c)Calculate the curvilinear integral by expressing the curve in cartesian coordinates.

With good Y on the y-axis and coffee on the x-axis, (a) Using indifference curves and...

With good Y on the y-axis and coffee on the x-axis, (a) Using indifference curves and budget lines, illustrate three utility-maximizing equilibrium points for Maxwell whose income elasticity of demand for coffee is zero. (b) Is good Y normal or inferior to Maxwell? (c) Explain whether you agree or disagree with the following statement: At each of the three equilibrium points in part (a), MUx/Px = MUy/Py and the marginal utility of money (l) is constant.

Good Y is on the vertical axis and good X is on the horizontal axis. If...

Good Y is on the vertical axis and good X is on the horizontal axis. If the slope of the indifference curve is steeper than the slope of the budget line then:MRS < −PX/PY.the consumer is willing to give up more of good Y to get additional units of good X.MRS < PX/PY.the consumer’s utility is maximized.the consumer is willing to give up more of good X to get an additional units of good Y.

Let R be the region enclosed by the x-axis, the y-axis, the line x = 2...

Let R be the region enclosed by the x-axis, the y-axis, the line x = 2 , and the curve ? = 2?? +3? (1) Find the area of R by setting up and evaluating the integral. (2) Write, but do not evaluate, the volume of the solid generated by revolving R around the y-axis (3) Write, but do not evaluate the volume of the solid generated by revolving R around the x-axis (4) Write, but do not evaluate the...

A wire is place on the x-axis, and a second wire is placed on the y-axis....

A wire is place on the x-axis, and a second wire is placed on the y-axis. The current in the horizontal wire is 3.0 A. The current in the vertical wire is 4.0 A. (Note the different currents.) a) What is the magnitude and direction of the net magnetic field at the point (1.0 m , 1.0 m)?b) What is the magnitude and direction of the net magnetic field at the point (-1.0 m , -1.0 m)? Suppose a tiny...

Find the maximum area of a triangle formed in the first quadrant by the x-axis, y-axis,...

Find the maximum area of a triangle formed in the first quadrant by the x-axis, y-axis, and a tangent line to the graph f=(x+3)^-2. Area=?

Describe a probability distribution. Explain the x-axis, y-axis, and area under the distribution.

Three charges lie on a x-y plane: q1 = +12.0 nC on the y-axis at y...

Three charges lie on a x-y plane: q1 = +12.0 nC on the y-axis at y = +0.400m; q2 = -9.00microC on the x=axis at x = 0; q3 = -5.00microC on the x-axis at x = +0.300m. A. Use the component method to determine the net force on q1 due to other charges (show magnitude and direction). B. Confirm answer of net force by using the geometrical (graphical) method to add the individual force vectors (not components). Choose a...

Graph with x axis labeled Real GDP (billions of constant dollars) and the y axis labeled...

Graph with x axis labeled Real GDP (billions of constant dollars) and the y axis labeled Aggregate Expenditure (dollars). The x and y axis have points 0, 200, 400, 600, 700, 800, and 1,000. There are 4 lines. One line is vertical with the plot point of (800,0), and labeled potential GDP. Another line is an upward sloping line starting at (0,0) and at a 45 degree angle. Two lines start around (0,400) and are labeled AE0 and AE1. Between...

Find the area enclosed between the x-axis and the curve y=x(x-1)(x+2)

Question