AP Econ question

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1

<p>Ok, I was given a quiz that had a production possibility frontier for 2 workers and asked for the comparative advantage and absolute advantage of the products, as well as the new outputs if the 2 workers specialized in their task.</p>

<p>Here’s an example like the one he gave without the same numbers because I forgot them:</p>

<p>

<a href=“http://i.imgur.com/LCrPP.png[/img]”>http://i.imgur.com/LCrPP.png

</a>
the colored lines represent the workers’ production and the numbers are not accurate</p>

<p>Wouldn’t the new outputs just be the x and y intercepts of the product made by the worker with a comparative advantage in its respective field?</p>

<p>Like in the picture, blue would make guns while red would make butter. So if the workers specialized, blue would have an output of 24 guns (y-intercept) while red would have an output of 24 butters (x-intercept).</p>

<p>However, the answer to the last part of the question question was (or would have been if using the numbers in the picture) 30 guns made by blue and 18 butters made by red. (there’s a way to get these numbers that I didn’t explain) This doesn’t make sense to me since the graph shows the outputs if ending production of one product. </p>

<p>Help is much appreciated! :/</p>