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Analysis (any type)
02/10/2021
Suppose your company produces one product at the output level (75 units) that minimizes its average cost. At the current level of 75 units, your company’s average cost is equal to $750. What would be this company’s change in total cost if, instead of producing 75 units, it decided to produce 76 units? Explain.
Two women, Michelle and Tracy, are stranded on an island. Michelle can catch 8 fish per hour or gather 10 coconuts per hour. Tracy can catch 10 fish per hour or gather 40 coconuts per hour.
Please fully explain and justify who has:
(a) an absolute advantage in producing both products,
(b) a comparative advantage in gathering coconuts, and
(c) a comparative advantage in catching fish.
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Really great job. Thank you so much. I really love it. Thank you so much for all of your help.
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