Purchase Solution

unambiguous gains

Not what you're looking for?

Ask Custom Question

8. A farmer and a rancher currently lead a subsistence existence, producing only meat and potatoes. The farmer could produce 2 units of meat per 40 hour week, or 6 potatoes, or any constant combination of the two. He currently splits his time between meat and potato production. The rancher can produce 45 units of meat, or 5 units of potatoes, or any constant combination in a 40 hour week. He currently splits his time between the two.

a. How much does the rancher and farmer currently produce and consume of meat and potatoes?
b. If they were to engage in trade with one another, who would - sell meat, and who would - sell potatoes? Explain why.
c. If the farmer were to specialize in production according to her comparative advantage, what would he produce? How do u know?
d. With this example, demonstrate the unambiguous gains the rancher and the farmer can enjoy if they specialize in production and then engage in trade.

Attachments
Purchase this Solution
Solution Summary

This posting illustrates unambiguous gains within the scenario.

Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

View More Free Quizzes
Related BrainMass Solutions

  • Contracts - custom and trade usage

    HMT responds that the quantity term in the contract was definite and unambiguous. Can custom and trade usage be used to interpret an unambiguous contract? Discuss.

  • Treatment of one stereoisomer of 2-iodo-3-phenylbutane

    a) Determine which enantiomer of 2-iodo-3-phenylbutene gives the E product (2R, 3R or 2S, 3R), and explain clearly (using unambiguous diagrams) why that is the case. b) Assign that enantiomer as either R or S at carbon 2.

  • Medical abbreviations and acronyms

    Whatever system is used abbreviations and acronyms must be unique, easily interpreted, and unambiguous.

  • Multiple Choice

    E Must be clear and unambiguous (clearly defined)

  • Internal and External validity

    Checking for Internal Validity determines whether "the connection between the independent variable and dependent variable clear and unambiguous to make a causal inference? (Leman, 1991).

  • Heredity and the Environment & Development

    In fact, scientists have identified few specific environmental variables that have direct, unambiguous effects on intelligence.

  • Operant psychology shaping procedures & learning language as a toddler

    Perhaps the most pertinent point in the argument that shaping as per operant conditioning can't explain a toddler's learning of language is the fact that operant conditioning requires a fairly unambiguous, high value reward.

  • Michael Porter's Five Forces

    If it is possible to have tasks that are perfectly unambiguous, the statement says there would be no need for structure.

  • Use and Effectiveness of Surveys

    Avoid 'double-barrel' questions, unambiguous language, abbreviation, jargon, and technical terms. Keep the survey short and still cover the needed questions; and test the survey on a few people in the target group. (Connelly, 2011).

View More Related Solutions