1. Amy and Garret just moved to Florida. Unaccustomed to the local fauna, they team up with local animal control. One day per weekend, they set about catching rogue alligators and pythons in the...

1 answer below »
1. Amy and Garret just moved to Florida. Unaccustomed to the local fauna, they team up with local animal control. One day per weekend, they set about catching rogue alligators and pythons in the canals around their home, and they surrender the animals to the authorities for an honorarium. These are their production possibilities per day:
Alligators Pythons Amy 2 8 Garret 4 10
Let's suppose that they initially split their time even y between catching alligators and snaring pythons and pool their spoils at the end of the day.
(a) Draw their individual PPFs, with alligators (A) on the horizontal axis and pythons (P) on the vertical. Mark their initial production points. How many alligators and pythons are they catching together?
Answered Same DayDec 31, 2021

Solution

David answered on Dec 31 2021
33 Votes
Solutions:
1. a)
Amy and Ga
et will catch a total of 18 pythons and 6 alligators all together.
) Ga
et has absolute advantage in catching both alligators and pythons as she is catching more of both animals with same resources.
c)
This joint PPF represents a constant opportunity cost for both Amy and Ga
et.
d) Amy’s Opportunity costs:
Of catching alligator = 8/2 = 4
Of catching pythons= 2/8 = 0.25
Ga
et’s opportunity costs:
Of catching alligators= 10/4 = 2.5
Of catching pythons= 4/10 = 0.4
e) Since ga
et has lower opportunity cost of catching alligator and Amy has lower opportunity cost of catching pythons; therefore, Amy should catch pythons and Ga
et should catch alligators.
f) If Amy...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here