Question

The table shows the maximum amount of pillows and pillow cases that Hector and Edwyn can produce with the same amount of resources. Output pillows pillow cases Hector 7 1 Edwyn 3 9 The table shows the maximum amount of pillows and pillow cases that Hector and Edwyn can produce with the same amount of resources. What is Hector's opportunity cost for 7 units of pillows? units of (select unit) What is Hector's opportunity cost for 1 unit of pillows? units of (select unit) What is Edwyn's opportunity cost for 3 units of pillows? units of (select unit) What is Edwyn's opportunity cost for 1 unit of pillows? units of (select unit) What is Hector's opportunity cost for 1 units of pillow cases? units of (select unit) What is Hector's opportunity cost for 1 unit of pillow cases? units of (select unit) What is Edwyn's opportunity cost for 9 units of pillow cases? units of (select unit) What is Edwyn's opportunity cost for 1 unit of pillow cases? units of (select unit) Who has the lower opportunity cost for producing pillows? (select producer) Who has the lower opportunity cost for producing pillow cases? (select producer) Who has the absolute advantage in producing pillows? (select producer) Who has the absolute advantage in producing pillow cases? (select producer) Who has the comparative advantage in producing pillows? (select producer) Who has the comparative advantage in producing pillow cases? (select producer) If they specialize and trade, who should produce pillows? (select producer) If they specialize and trade, who should produce pillow cases? (Select Proeducer) = Hector or Edwin.

Answer 1

Hector's opportunity cost for 7 units of pillows is 1/7 unit of pillow case. Edwyn's opportunity cost for 3 units of pillows is 1/3 unit of pillow case. Hector has a lower opportunity cost for producing pillows while Edwyn has a lower opportunity cost for producing pillow cases.

Step-by-step explanation:

Hector's opportunity cost for 7 units of pillows is 1/7 unit of pillow case. His opportunity cost for 1 unit of pillows is 1 unit of pillow case.

Edwyn's opportunity cost for 3 units of pillows is 1/3 unit of pillow case. His opportunity cost for 1 unit of pillows is 1/9 unit of pillow case.

For Hector's opportunity cost for 1 unit of pillow cases is 7 units of pillows. His opportunity cost for 1 unit of pillow cases is 7 units of pillows.

Edwyn's opportunity cost for 9 units of pillow cases is 3 units of pillows. His opportunity cost for 1 unit of pillow cases is 1/3 unit of pillow.

Hector has a lower opportunity cost for producing pillows.

Edwyn has a lower opportunity cost for producing pillow cases.

Hector has the absolute advantage in producing pillows.

Edwyn has the absolute advantage in producing pillow cases.

Hector has the comparative advantage in producing pillows.

Edwyn has the comparative advantage in producing pillow cases.

If they specialize and trade, Hector should produce pillows and Edwyn should produce pillow cases.