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Rosa and Alyssa are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Rosa takes 3 hours to brew a gallon of root beer and 2 hours to make a pizza. Alyssa takes 7 hours to brew a gallon of root beer and 5 hours to make a pizza.
Rosa's opportunity cost of making a pizza is ? of root beer, and Alyssa's opportunity cost of making a pizza is ? of root beer. ? has an absolute advantage in making pizza, and ? has a comparative advantage in making pizza. If Rosa and Alyssa trade foods with each other, ? will trade away pizza in exchange for root beer. The price of pizza can be expressed in terms of gallons of root beer. The highest price at which pizza can be traded that would make both roommates better off is ? of root beer, and the lowest price that makes both roommates better off is ? of root beer per pizza.

Respuesta :

Answer and Explanation:

The computation is shown below:

The opportunity cost of Rosa while making a pizza is

= 2 ÷ 3 of root beer

And, The opportunity cost of Alyssa while making a pizza is

= 5 ÷ 7 of root beer

Now rosa has an absolute advantage i.e. it takes less time also she has comparative advantage i.e. less opportunity cost while making the pizza

Now in the case when both trade foods with each other so Rosa would trade away pizza while exchanging the root beer. Also the pizza price would be expressed in root beer gallons. It could be better off by highest price i.e. 5 ÷ 7 root beer gallons and the lesser price is 2 ÷ 43 root beer gallons

Opportunity cost

When The computation is shown below:

  • When The opportunity cost of Rosa while making a pizza
  • Then = 2 ÷ 3 of root beer
  • And, also that The opportunity cost of Alyssa while making a pizza is = 5 ÷ 7 of root beer
  • When rosa has an absolute advantage that is it takes less time and also she has a comparative advantage that is less opportunity cost while making the pizza
  • When in this case are both trade foods with each other so Rosa would trade away pizza while exchanging the root beer. and Also that the pizza price would be expressed in root beer gallons.
  • Thus, It could be better off by the highest price i.e. 5 ÷ 7 root beer gallons and also the lesser price is 2 ÷ 43 root beer gallons

Find out more information about opportunity cost here :

https://brainly.com/question/1400500

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