Mountain Mack and Big Lake Bob spend their time carving fishing lures and duck d

Question

Mountain Mack and Big Lake Bob spend their time carving fishing lures and duck decoys. The table below shows their production possibilities schedules, which describe various combinations of fishing lures and duck decoys they each can carve efficiently in a week. Please show your work I'm really trying to understand this, thanks!

Production Possibilities Schedules

a. If Mountain Mack splits his week evenly between carving fishing lures and duck decoys, what is the maximum number of fishing lures and duck decoys could he carve?

a.) 15 fishing lures and 10 duck decoys

b.) 80 fishing lures and 20 duck decoys

c.)10 fishing lures and 15 duck decoys

d.) 30 fishing lures and 20 duck decoys

b. If Big Lake Bob splits his week evenly between carving fishing lures and duck decoys, what is the maximum number of fishing lures and duck decoys could he carve?

a.) 40 fishing lures and 10 duck decoys

b.) 80 fishing lures and 20 duck decoys

c.) 20 fishing lures and 80 duck decoys

d.) 10 fishing lures and 40 duck decoys

c. Combined, how many fishing lures and duck decoys could Mountain Mack and Big Lake Bob carve if each one split his week between the two products?

a.) 80 fishing lures and 20 duck decoys

b.) 20 fishing lures and 55 duck decoys

c.) 20 fishing lures and 80 duck decoys

d.) 55 fishing lures and 20 duck decoys

d. Who has the comparative advantage in carving fishing lures? In carving duck decoys?

     Fishing lures: Big Lake Bob or Mountain Mack

     Duck decoys: Big Lake Bob or Mountain Mack

e. If both Mountain Mack and Big Lake Bob choose to specialize in the product in which he has a comparative advantage, how many of each product could they produce together?

a.) 40 fishing lures and 30 duck decoys

b.) 80 fishing lures and 20 duck decoys

c.) 20 fishing lures and 80 duck decoys

d.) 30 fishing lures and 40 duck decoys

Mountain Mack Big Lake Bob Fishing Lures Duck Decoys Fishing Lures Duck Decoys 30 0 80 0 24 4 64 4 18 8 48 8 12 12 32 12 6 16 16 16 0 20 0 20

Explanation / Answer

a) a.) 15 fishing lures and 10 duck decoys

When Mountain Mack produces only fishing lures then it can produce maximum of 30 lures and if it only produces duck decoys then it can produce maximum of 20 decoys. So, after splitting week it is able to produce half of fishing lures and half of duck decoys.

Fishing lures = 30/2 = 15

Duck decoys = 20/2 = 10

b) a.) 40 fishing lures and 10 duck decoys

When Big lake bob produces only fishing lures then it can produce maximum of 80 lures and if it only produces duck decoys then it can produce maximum of 20 decoys. So, after splitting week it is able to produce half of fishing lures and half of duck decoys.

Fishing lures = 80/2 = 40

Duck decoys = 20/2 = 10

c) d.) 55 fishing lures and 20 duck decoys

Total production of fishing lures = 15 + 40 = 55

Total production of duck decoys = 10 + 10 = 20

d) A country has a comparative advantage in producing that good if the opportunity cost of producing that good is lower in that country as compared to another country.

Mountain Mack:

20 Duck decoys = 30 Fishing lures

1 duck decoy = 30/20 = 1.5 fishing lures

Opportunity cost of producing 1 duck decoy by Mountain Mack is 1.5 fishing lures.

Big Lake Bob:

20 duck decoys = 80 fishing lures

1 duck decoy = 80/20 = 4 fishing lures

Opportunity cost of producing 1 duck decoy by Big lake bob is 4 fishing lures.

Mountain Mack has comparative advantage in the production of Duck decoys because of lower opportunity cost. Big Lake Bob has comparative advantage in Fishing Lures.

Fishing lures: Big Lake Bob

Duck decoys: Mountain Mack

e) b.) 80 fishing lures and 20 duck decoys

After specialisation, Big Lake Bob will only produce Fishing lures and Mountain mack only duck decoys.

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