Answer to Question #67482 in Microeconomics for Thi Thanh Thao Nguyen

Question

Two Canadian workers, Adam and Karina, can each produce stoves or coffee. Adam can produce either 50 kg of coffee or 1 stove per month. Karina can produce either 160 kg of coffee or 1 stove per month.

Note: Please be sure to be as accurate as possible and to round your answers to two decimal places.


a) Plot Canada's production possibilities curve by plotting at least 3 points on the curve.
Vertical (Coffee): 0-40-80-120-...
Horizontal (Stoves): 0-0.5-1-...

b) How much of each good is produced if each worker specializes according to comparative advantage?

Stoves = ?
Coffee = ?