u Ru Computer Repair R TSS Done Quiz 1 he Tivoli and the Fri

u Ru Computer Repair R TSS Done Quiz 1 he Tivoli and the Frivoli. By themselves, the Tivoll each month can produce either 30 pounds meatbails, or 30 pounds of meatbalis and no spaghetti, or any combination in betws 17. (Problem 3a.) In the ancient country of Roma, only two goods, spaghetti and meatballs, are produced. There are two tribes in Roma, t y combination in between. The Frivolil, by themselves, each month can produce 40 pounds of spaghetti and no meatballs and no spaghetti, or any in Assuming that all production possibilities for ters are straight res, the d agram shows the monthly roacto esibilits to cer or the Thoi and the moon roducto posso ces font erfor be Fr (a) Production possibitity frontier (b) Prodaction possibility frontier for the Tivoli for the Frivoli Quantity of spaghetti ed spaghetti (pounds) 0 50 20 10 0 10 20 30 50 50 010 20 304060 Oaantity of meatbatls (pounds) Quantity of meatbatls psunds Based on the dagram A both the Tivoli and the Frivoli can produce the same amount of meatbals B. both the Tivoli and the Frivoli can produce the same amount of spaghetti. C. the Tivoli can produce more meatballs and the Frwoli can produce more spaghetti D, the Tivoli can produce more spaghetti and the Frivoli can produce more meatbals Start: 12:44 PM

Solution

17.

C.

According to the graph, Tivoli can produce 50 pounds of meatballs that is more than the meatballs being produced by the Frivoli. Further, the Frivoli can produce 40 pounds of spaghetti that is higher than what is being produced by Tivoli.

18.

C.

Tivoli has lower opportunity cost for producing meatballs , so Tivoli has comparative advantage in producing meatballs. Frivoli has lower opportunity cost in producing spaghetti. So, Frivoli has comparative advantage in producing spaghetti.