Essay
In one day, John can make 100 of good X or 50 of good Y. In the same period Lucy can make 40 of good X and 80 of good Y.
a. If both people used half their time to make good X, what is the total amount of X that would be made?
b. Suppose the person with the comparative advantage in X reduced production by one unit of Y to make more X. Suppose that the person with the comparative advantage in Y reduced production of by one unit of X. How does the total production of X change compared to (a)?
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a. John would make 50 of X and Lucy woul...View Answer
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