Essay
Sam and Mattie produce hogs and corn. Sam can produce 100 hogs or 2000 bushels of corn per year. Mattie can produce 80 hogs or 1200 bushels of corn per year. Suppose that both devote their time equally between the production of hogs and corn.
a. Who has the absolute advantage in production?
b. How many hogs are being produced in total before any trade?
c. How many less hogs would be produced if Sam grew 60 more bushels of corn instead?
d. How many more hogs would be produced if Mattie grew 60 less bushels of corn instead?
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a. Sam has the absolute advantage in cor...View Answer
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