ECONOMIC CONCEPTS
2011
KENNETH M. ZACHARY SR.
AMERICAN INTERCONTINENTAL UNIVERSITY
3/26/2011
What is Michelle’s opportunity cost of producing potatoes?
* Opportunity cost is the cost related to the next-best choice available to someone who has picked among several mutually exclusive choices. Therefore, Michelle’s opportunity cost is the cost of raising fifty chickens.
What is Michelle’s opportunity cost of producing chickens?
* Opportunity cost is the cost related to the next-best choice available to someone who has picked among several mutually exclusive choices. Therefore, Michelle’s opportunity cost is the cost of growing two-hundred pounds of potatoes.
What is James opportunity cost of producing potatoes?
* Opportunity cost is the cost related to the next-best choice available to someone who has picked among several mutually exclusive choices. Therefore, James opportunity cost is the cost of raising forty chickens.
What is James opportunity cost of producing chickens?
* Opportunity cost is the cost related to the next-best choice available to someone who has picked among several mutually exclusive choices. Therefore, James opportunity cost is the cost of growing eighty pounds o potatoes?
Which person has an absolute advantage in which activities?
* In economics, the principle of absolute advantage refers to the ability of an individual to produce more of a good than his competitors, while using the same amount of resources. Therefore, Michelle has an absolute advantage in growing potatoes because her operation seems to be more efficient since she’s able to grow one-hundred and twenty pounds more potatoes than James.
Which person has a comparative advantage in potatoes?
* In economics, the law of comparative advantage says that two countries or two individuals in this case, can both gain from trade if, in the absence of trade, they have different relative cost for producing the same goods. Therefore, Michelle has a... [continues]
2011
KENNETH M. ZACHARY SR.
AMERICAN INTERCONTINENTAL UNIVERSITY
3/26/2011
What is Michelle’s opportunity cost of producing potatoes?
* Opportunity cost is the cost related to the next-best choice available to someone who has picked among several mutually exclusive choices. Therefore, Michelle’s opportunity cost is the cost of raising fifty chickens.
What is Michelle’s opportunity cost of producing chickens?
* Opportunity cost is the cost related to the next-best choice available to someone who has picked among several mutually exclusive choices. Therefore, Michelle’s opportunity cost is the cost of growing two-hundred pounds of potatoes.
What is James opportunity cost of producing potatoes?
* Opportunity cost is the cost related to the next-best choice available to someone who has picked among several mutually exclusive choices. Therefore, James opportunity cost is the cost of raising forty chickens.
What is James opportunity cost of producing chickens?
* Opportunity cost is the cost related to the next-best choice available to someone who has picked among several mutually exclusive choices. Therefore, James opportunity cost is the cost of growing eighty pounds o potatoes?
Which person has an absolute advantage in which activities?
* In economics, the principle of absolute advantage refers to the ability of an individual to produce more of a good than his competitors, while using the same amount of resources. Therefore, Michelle has an absolute advantage in growing potatoes because her operation seems to be more efficient since she’s able to grow one-hundred and twenty pounds more potatoes than James.
Which person has a comparative advantage in potatoes?
* In economics, the law of comparative advantage says that two countries or two individuals in this case, can both gain from trade if, in the absence of trade, they have different relative cost for producing the same goods. Therefore, Michelle has a... [continues]
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