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Business, 13.06.2020 08:57 stephanieanaya7
Paint (y)
Martha 2 hours per room
Stewart 4 hours per room
Wallpaper (x)
Martha 8 hours per room
Stewart 10 hours per room
Assume PPF is a straight line for Martha and Stewart. Assume Martha and Stewart has 40 hours (scarce resource). Suppose they evenly distribute the time under autarky between the products to find out their production distribution between paint and wallpaper.
A)What product does Martha and Stewart have
comparative advantage in?
B) If they both completely specialize in the products
they have comparative advantage in, what is their
production after specialization?
C) If Martha is willing to give 5 paint, for how many wallpapers will Stewart agree to the trade?
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Answers: 2
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You know the right answer?
Paint (y)
Martha 2 hours per room
Stewart 4 hours per room
Wallpaper (x)
Martha 8 ho...
Stewart 4 hours per room
Wallpaper (x)
Martha 8 ho...
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