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MICROECONOMICS 1A 1 1. (i) Maximum number of coffee kg that can be picked by Jara and Pick

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8 REFERENCES 10 1A 1.(i) Maximum number of coffee kg that can be picked by Jara and Pick, if each of them dedicate 6 working hours every day can be compute as follows: 1.(ii) Maximum number of nuts kg that can be picked by Jara and Pick, when they both devote 6 hours every day, can be computed underneath: 1.(ii) Maximum number of nuts kg that can be picked by Jara and Pick, when they both devote

MICROECONOMICS 1A 1 1. (i) Maximum number of coffee kg that can be picked by Jara and Pick

   Added on 2020-07-22

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MICROECONOMICS 1A 1 1. (i) Maximum number of coffee kg that can be picked by Jara and Pick_1
Table of Contents1A....................................................................................................................................................11.(i)...............................................................................................................................................11.(ii)..............................................................................................................................................11. (iii)............................................................................................................................................11. (iv)............................................................................................................................................21. (v).............................................................................................................................................21B.....................................................................................................................................................2(i)..................................................................................................................................................2(ii).................................................................................................................................................2(iii)................................................................................................................................................4(iv)................................................................................................................................................4(v).................................................................................................................................................53.......................................................................................................................................................5(a).................................................................................................................................................5(b).................................................................................................................................................6(c).................................................................................................................................................6(d).................................................................................................................................................6(e).................................................................................................................................................6(f)..................................................................................................................................................64.......................................................................................................................................................7(a).................................................................................................................................................7(b).................................................................................................................................................8REFERENCES..............................................................................................................................10
MICROECONOMICS 1A 1 1. (i) Maximum number of coffee kg that can be picked by Jara and Pick_2
1A1.(i)Maximum number of coffee kg that can be picked by Jara and Pick, if each of themdedicate 6 working hours every day can be compute as follows: MaximumpickbyJara:4kg/hourMaximumpickbyPeng:2kg/hourWorkinghours:6hoursperdayMaximumpick:(4∗6)+(2∗6)¿24+12¿36kg1.(ii)Maximum number of nuts kg that can be picked by Jara and Pick, when they both devote6 hours every day, can be computed underneath: MaximumpickbyJara:2kg/hourMaximumpickbyPeng:4kg/hourWorkinghours:6hoursperdayMaximumpick:(2∗6)+(4∗6)¿12+24¿36kg1. (iii) In order to make better off, the main concern is to determine the member who isspecialize in the activity with more competitive advantage. To do this, it is necessary to find theperson with less opportunity costs of picking nuts and coffee. In the given situation, for Jara,opportunity cost of picking coffee is ½ kg of nuts whereas picking nuts costs her 2 kg of coffee.However, on the other side, for Peng, each kg of coffee that he picks cost him 2 kg of nuts whilstpicking nuts cost him ½ kg of coffee. Thus, the result demonstrates that opportunity cost for nutsis comparatively lower for Tom (1/2) than Jara(2). Thus, it is better that Peng would carry allnuts due to more competitive benefits (McConnell, Brue and Flynn, 2014). He can pick 4 nuts in1
MICROECONOMICS 1A 1 1. (i) Maximum number of coffee kg that can be picked by Jara and Pick_3
one hour and rest 5 working hours can be devoted to coffee. Thus, he would still be able to pick(2∗5)=10kg of coffee and Jara can pick (4∗6)=24kg, totalled to 34 kg coffee in a day. 1. (iv)Similarly, to earlier, now, it needs to determine the person with competitive benefits incoffee picking. Picking coffee by Jara cost her by only ½kg of nuts while the same for Peng is 2kg of nuts. Thus, it becomes clear that Jara faces less opportunity costs in comparison to Jara,hence, she would pick it (Baumol and Blinder, 2015). She would need to devote total 2 hours topick 8 kg of coffee each day and remainder 4 hours can be used to pick nuts at total pick up of(2kg∗4hours)=8kg while Peng can pick (4∗6)=24kg nuts totalled to 32 kg. 1. (v). Yes, it would be possible to pick total 26 kg nut and 20 kg coffee in a day. As discussedearlier, Jara is in competitive benefit to pick coffee whereas Peng would suffer lower opportunitycost if he picks nuts. Thus, if she devote entire time to coffee then total amount then she wouldbe able to pick is (4kg∗6)=24kg. The rest 2 kg need to be picked by Peng by devoting 1 hour(2kg∗1hour)=2kg. His remainder-working period he could dedicate to nuts, hence, the totalweight he can pick would be(5hours∗4kg)=20kg. 1B(i)Yes, it is possible and an attainable and efficient point to pick 30 kg coffee and 12 kgnuts within a day because the maximum amount of coffee Jara would pick is 24 kg. However,Peng would devote equal hours to both the items, hence, he can pick (3 hours*2kg) = 6 kg ofcoffee and (3 hrs*4kg) = 12 kg of nuts. Picking 24 kg of coffee & nuts is also attainable and efficient, in which, Jara woulddevote entire time (6hrs∗4kg)=24kg to pick coffee only whereas Peng would devote his timeto pick nuts (4kg∗6hrs)=24kgonly (Perloff, 2017). 2
MICROECONOMICS 1A 1 1. (i) Maximum number of coffee kg that can be picked by Jara and Pick_4

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