Suppose that Costa Rican worker Carlos can produce either140 pounds of coffee or 1 computer per week, and a secondworker, Maria, can produce either 300 pounds of coffee or1 computer per week. Both Carlos and Maria work 50 weeksper year.
Instructions: Enter all values as absolutenumbers.
a. Carlos opportunity cost of producing a computeris pounds of coffee, and Maria's opportunity costof producing a computer is pounds of coffee.
If both workers completely specialize in the production of onegood, then together they can produceeither computers or pounds ofcoffee per year.
If both workers instead completely specialize according to theirrespective comparative advantage, then together they canproduce computers and poundsof coffee per year.
b. Assume that world prices are such that 1 computer tradesfor 200 pounds of coffee on international marketsand that Costa Rica is open to trade.
If computers can either be produced domestically orimported from abroad in exchange for Costa Rican coffee, then themaximum number computers that Carlos and Maria can consume annuallyis . To obtain this number of computers, Carlos's willproduce (Click to select) bothcoffee andcomputers computers neithercoffee nor computers coffee and Mariawill produce (Click toselect) computers coffee bothcoffee and computers neither coffee norcomputers .
If coffee can either be produced domestically or importedfrom abroad in exchange for Costa Rican computers, then the maximumamount of coffee that Carlos and Maria can consume annuallyis pounds. To obtain this amount of coffee,Carlos's will produce (Click toselect) coffee computers neithercoffee nor computers both coffee andcomputers and Maria will produce (Clickto select) neither coffee norcomputers both coffee andcomputers computers coffee .
c. Assume instead that world prices are such that 1computer trades for 110 pounds of coffee on internationalmarkets and Costa Rica is open to trade.
If computers can either be produced domestically orimported from abroad in exchange for Costa Rican coffee, then themaximum number computers that Carlos and Maria can consume annuallyis . To obtain this number of computers, Carlos's willproduce (Click toselect) computers neither coffeenor computers both coffee andcomputers coffee and Maria willproduce (Click to select) bothcoffee and computers neither coffee norcomputers computers coffee .
If coffee can either be produced domestically or importedfrom abroad in exchange for Costa Rican computers, then the maximumamount of coffee that Carlos and Maria can consume annuallyis pounds. To obtain this amount of coffee,Carlos's will produce (Click toselect) coffee computers neithercoffee nor computers both coffee andcomputers and Maria will produce (Clickto select) neither coffee norcomputers both coffee andcomputers coffee computers .
Suppose that Costa Rican worker Carlos can produce either 140 pounds of coffee or 1 computer per week, and a second work
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