An electric device delivers a current of [tex]$15.0 A$[/tex] for 30 seconds. How many electrons flow through it?
Answer (1)
Sequoia's opportunity cost of producing 1 pair of chinos is 4 pounds of pistachios, while Yosemite's opportunity cost is 2 pounds of pistachios.
Yosemite has a comparative advantage in chinos, and Sequoia has a comparative advantage in pistachios.
Yosemite specializes in chinos, producing 20 million pairs per day.
Sequoia specializes in pistachios, producing 64 million pounds per day.
Explanation
Understanding Production Capabilities Let's analyze the production capabilities of Sequoia and Yosemite to determine their opportunity costs and comparative advantages. This will guide us in understanding how specialization can increase total production.
Calculating Opportunity Costs First, we need to calculate the opportunity cost for each country. The opportunity cost represents what a country must give up in terms of one good to produce another.
Sequoia's Opportunity Cost For Sequoia, producing 1 pair of chinos requires giving up 4 16 = 4 pounds of pistachios. So, Sequoia's opportunity cost of producing 1 pair of chinos is 4 pounds of pistachios.
Yosemite's Opportunity Cost For Yosemite, producing 1 pair of chinos requires giving up 5 10 = 2 pounds of pistachios. Thus, Yosemite's opportunity cost of producing 1 pair of chinos is 2 pounds of pistachios.
Determining Comparative Advantage Now, we determine comparative advantages. A country has a comparative advantage in producing a good if it has a lower opportunity cost of producing that good.
Comparative Advantage in Chinos Since Yosemite's opportunity cost of producing chinos (2 pounds of pistachios) is lower than Sequoia's (4 pounds of pistachios), Yosemite has a comparative advantage in producing chinos.
Comparative Advantage in Pistachios Conversely, Sequoia has a comparative advantage in producing pistachios because its opportunity cost of producing chinos is higher, meaning it gives up more pistachios to produce chinos compared to Yosemite. Another way to see this is that Yosemite's opportunity cost of producing 1 pound of pistachios is 0.5 pairs of chinos (5/10), while Sequoia's opportunity cost of producing 1 pound of pistachios is 0.25 pairs of chinos (4/16). Since 0.25 < 0.5, Sequoia has a comparative advantage in pistachios.
Specialization If each country specializes in the good in which it has a comparative advantage, Yosemite will produce only chinos, and Sequoia will produce only pistachios.
Yosemite's Chinos Production Yosemite's labor force is 4 million hours per day, and it can produce 5 pairs of chinos per hour. Therefore, if Yosemite specializes in chinos, it will produce 4 × 5 = 20 million pairs of chinos per day.
Sequoia's Pistachios Production Sequoia's labor force is 4 million hours per day, and it can produce 16 pounds of pistachios per hour. If Sequoia specializes in pistachios, it will produce 4 × 16 = 64 million pounds of pistachios per day.
Final Answer Summary In summary:
Sequoia's opportunity cost of producing 1 pair of chinos is 4 pounds of pistachios.
Yosemite's opportunity cost of producing 1 pair of chinos is 2 pounds of pistachios.
Yosemite has a comparative advantage in the production of chinos.
Sequoia has a comparative advantage in the production of pistachios.
If Yosemite specializes in chinos, it will produce 20 million pairs per day.
If Sequoia specializes in pistachios, it will produce 64 million pounds per day.
Examples
Comparative advantage and specialization are fundamental concepts in international trade. For example, if Brazil can produce sugar at a lower opportunity cost than the US, and the US can produce airplanes at a lower opportunity cost than Brazil, both countries benefit if Brazil specializes in sugar production and the US specializes in airplane production. They can then trade these goods, leading to higher overall production and consumption in both countries. This principle applies to individuals, businesses, and countries, promoting efficiency and economic growth.
