Suppose that Bianca and Rosa each own a small farm. They both produce corn and wheat. Each hour, Bianca can either produce 1 kilo of corn or 1 kilo of wheat, and Rosa can either produce 3 kilos of corn or 2 kilos of wheat. Each person works 8 hours a day.

Based on this information, who has the comparative advantage in producing corn?

A. Bianca because her opportunity cost of producing corn (1 kilo of wheat) is higher than Rosa (0.67 kilos of wheat).

B. Rosa because her opportunity cost of producing corn (0.67 kilos of wheat) is lower than Bianca (1 kilo of wheat).

C. Bianca because her opportunity cost of producing corn (1 kilo of wheat) is lower than Rosa (1.5 kilos of wheat).

D. Rosa because her opportunity cost of producing corn (1.5 kilos of wheat) is higher than Bianca (1 kilo of wheat).

Question

17-08-2023
Business

High School

We appreciate your visit to Suppose that Bianca and Rosa each own a small farm They both produce corn and wheat Each hour Bianca can either produce 1 kilo of. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!

Suppose that Bianca and Rosa each own a small farm. They both produce corn and wheat. Each hour, Bianca can either produce 1 kilo of corn or 1 kilo of wheat, and Rosa can either produce 3 kilos of corn or 2 kilos of wheat. Each person works 8 hours a day.

Based on this information, who has the comparative advantage in producing corn?

A. Bianca because her opportunity cost of producing corn (1 kilo of wheat) is higher than Rosa (0.67 kilos of wheat).

B. Rosa because her opportunity cost of producing corn (0.67 kilos of wheat) is lower than Bianca (1 kilo of wheat).

C. Bianca because her opportunity cost of producing corn (1 kilo of wheat) is lower than Rosa (1.5 kilos of wheat).

D. Rosa because her opportunity cost of producing corn (1.5 kilos of wheat) is higher than Bianca (1 kilo of wheat).

Answer :

Other Questions

Which reaction creates Karst topography? A. Carbonic acid with limestone B. Water

A store sells almonds for [tex]$\$7$[/tex] per pound, cashews for [tex]$\$10$[/tex] per

2m minus m minus 7m simplified expression

What is the keyboard shortcut for pasting information that you have already

30ml of 0.6M sodium acetate solution is added to 50ml of 2M

The temperature in Miami, Florida, is 22 degrees warmer than three times

What is it called when the audience believes the climax of the

Six members of the Benton family are going to their school's Community

Solve the equation: \[ 60000 = 12000(1.14)^t \]

A certain medication may cause side effects. To further investigate this finding,

abhinavjh321 abhinavjh321 · Answer 1 · 2023-09-17T17:11:29-04:00

The correct option is b. Rosa because her opportunity cost of producing corn (0.67 kilos of wheat) is lower than Bianca (1 kilo of wheat). Rosa has the comparative advantage in producing corn because the opportunity cost is 0.67 kilos of wheat per kilo of corn, which is lower than Bianca's 1 kilo of wheat per kilo of corn.

Based on the information provided, Rosa has the comparative advantage in producing corn because her opportunity cost of producing corn is lower than Bianca's. Bianca can produce 1 kilo of wheat for every kilo of corn she chooses not to produce, making her opportunity cost of producing corn 1 kilo of wheat. On the other hand, Rosa can produce 2 kilos of wheat for every 3 kilos of corn she produces.

Thus, for every extra kilo of corn Rosa chooses to produce, she gives up 0.67 kilos of wheat (2/3). Therefore, the correct answer is:b. Rosa because her opportunity cost of producing corn (0.67 kilos of wheat) is lower than Bianca's (1 kilo of wheat). The correct option is b. Rosa because her opportunity cost of producing corn (0.67 kilos of wheat) is lower than Bianca (1 kilo of wheat).