Bob and Erik are both experienced in making pizzas and burgers. In one day, Bob can make 8 pizzas or 32 burgers. With the same effort and in the same day, Erik can make 12 pizzas or 36 burgers.Who has the absolute advantage in making pizzas and who has the absolute advantage in making burgers?Who has the comparative advantage in each activity? Show your derivations.According to the principle of comparative advantage, in which activity should eachperson (Bob and Erik) specialize in order to gain from trade?Note:-Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.

A country has an absolute advantage in production a good when he can producer that good more…

Answered: Who has the absolute advantage in…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section3.2: Comparative Advantage: The Driving Force Of Specilization

Problem 2QQ

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Bob and Erik are both experienced in making pizzas and burgers. In one day, Bob can make 8 pizzas or 32 burgers. With the same effort and in the same day, Erik can make 12 pizzas or 36 burgers.

Who has the absolute advantage in making pizzas and who has the absolute advantage in making burgers?
Who has the comparative advantage in each activity? Show your derivations.
According to the principle of comparative advantage, in which activity should each

person (Bob and Erik) specialize in order to gain from trade?

Note:-

Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.

Definition Video Definition Ability of a country to produce more output with a given level of input or to produce the same level of output with a lower level of input as compared to the other countries. For example, if Country A produces 200 units with the help of 10 units of labor, and Country B produces 300 units with 10 units of labor, Country A has an absolute advantage in the production of the good. Video

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