Question Question George and Bill are stuck together on a desert island. There are two goods, Coconut (C) and Bananas (B). George has production function 5C+B=40, while Bill has production function C+3B=36. If they could not trade, George would choose to product 6C, while Bill would produce 10B. 1: Figure out George’s opportunity cost 2: Figure out Bill’s opportunity cost 3: Figure out each party’s comparative advantage 4: Determine which good each party should specialize in, and determine production. There are two goods, Coconut (C) and Bananas (B). George has production function 5C+B=40, while Bill has production function C+3B=36. If they could not trade, George would choose to product 6C, while Bill would produce 10B. 1: Figure out George’s opportunity cost 2: Figure out Bill’s opportunity cost 3: Figure out each party’s comparative advantage 4: Determine which good each party should specialize in, and determine production
Question
George and Bill are stuck together on a desert island. There are two goods,
Coconut (C) and Bananas (B). George has production function 5C+B=40, while Bill has production function C+3B=36. If they could not trade, George would choose to product 6C, while Bill would produce 10B.
1: Figure out George’s opportunity cost
2: Figure out Bill’s opportunity cost
3: Figure out each party’s comparative advantage
4: Determine which good each party should specialize in, and determine production
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