PAnoPage 58. Pat and Kerry are considering a partnership. With all Pat's resources, Pat can produce 50 X or20 Y. With all of Kerry's resources, Kerry can produce 30 X or 30 Y. Assume theresources can be easily substituted to make either product. They are starting by using halfof the resources to make each item. These relationships are shown in the following table. Usethis information to answer the following questions:KerryProduct X(Xylophones)Product Y(Yams)500Pat25Pat make?10020Pat make?3001515030a. Who has an absolute advantage in producing X? Patb. Who is a comparative advantage in producing Y?Partnershipbe gained from before they started trading?c. If Pat and Kerry decided to take all the gains from trade in X, how much X would4025d. If Pat and Kerry decided to take all the gains from trade in X, how much X wouldGainbe gained from before they started trading?e. If Pat and Kerry decided to take all the gains from trade in Y, how much Y wouldf. If Pat and Kerry decided to take all the gains from trade in Y, how much y would

Pat and Kerry are considering a partnership.With all Pat's resource’s, Pat can produce 50 X or 20…

Product X (Xylophones) Product Y (Yarns) 50 0 Wer the following questions: Pat Pat make? 25 10 0 Pat make? 30 20 0 Kerry 15 15 30 a. Who has an absolute advantage in producing X? Pati 0 b. Who is a comparative advantage in producing Y? Partnership be gained from before they started trading? c. If Pat and Kerry decided to take all the gains from trade in X, how much X would 40 25 d. If Pat and Kerry decided to take all the gains from trade in X, how much X would Gain be gained from before they started trading? e. If Pat and Kerry decided to take all the gains from trade in Y, how much Y would f. If Pat and Kerry decided to take all the gains from trade in Y, how much Y would

Product X (Xylophones) Product Y (Yarns) 50 0 Wer the following questions: Pat Pat make? 25 10 0 Pat make? 30 20 0 Kerry 15 15 30 a. Who has an absolute advantage in producing X? Pati 0 b. Who is a comparative advantage in producing Y? Partnership be gained from before they started trading? c. If Pat and Kerry decided to take all the gains from trade in X, how much X would 40 25 d. If Pat and Kerry decided to take all the gains from trade in X, how much X would Gain be gained from before they started trading? e. If Pat and Kerry decided to take all the gains from trade in Y, how much Y would f. If Pat and Kerry decided to take all the gains from trade in Y, how much Y would

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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