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How much does it cost to raise a chicken for year
Suppose that two people michelle and james each live alone in an isolated region they each have the same resources available and they grow potatoes and raise chickens if michelle devotes all her resources to growing potatoes she can raise 200 pounds of potatoes per year if she devotes all her resources to raising chickens she can raise 50 chickens per year if she apportions some resources to each then she can produce any linear combination of chickens and potatoes that lies between those extreme points if james devotes all his resources to growing potatoes he can raise 80 pounds of potatoes per year if he devotes all his resources to raising chickens he can raise 40 chickens per year if he apportions some resources to each then he can produce any linear combination of chickens and potatoes that lies between those extreme points potatoes chickens michelle 200 50 james 80 40 what is michelle s opportunity cost of producing potatoes what is michelle s opportunity cost of producing chickens what is james opportunity cost of producing potatoes what is james opportunity cost of producing chickens which person has an absolute advantage in which activities which person has a comparative suppose that they are thinking of each specializing completely in the area in which they have a comparative advantage and then trading at a rate of 2 5 pounds of potatoes for 1 chicken would they each be better off explain how would you extend the above narrative to businesses society as a whole or nations explain
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