-
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malaria cases on the y-axis. On your graph,
(1) Draw a marginal cost curve and
a marginal
benefit curve that are consistent with Bruno
Moonen's opinion.
(ii) Identify the quantity of malaria eradicated
that achieves allocative efficiency.
1
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Gains from Trade
Use the following data to work Problems 18 and 19.
Fadi can produce 10 baklavas (a Turkish pastry) or
250 bars of chocolate an hour. Hania can produce 30
baklavas or 90 bars of chocolate an hour.
18. a. Calculate Fadi's opportunity cost of a baklava
and Hania's opportunity cost of a baklava.
b. If each spends 30 minutes of each hour
baking baklavas and 30 minutes producing
chocolate, how many baklavas and chocolate
bars does each produce?
c. Who has a comparative advantage in produc-
ing (1) baklavas and (ii) chocolate bars?
19. a. Draw a graph of Fadi's PPF and Hania's PPF
and show the point at which each produces when
they spend 30 minutes of each hour producing
baklavas and 30 minutes producing chocolate bars.
b. On your graph, show what Fadi produces and
what Hania produces when they specialize.