help 9:05 PM geccd.instructure.com D Question 22 2 pts Consider the following sc

Question

help

9:05 PM geccd.instructure.com D Question 22 2 pts Consider the following scenario to answer the following questions: Kukla makes tables, with an opportunity cost of 3 rugs per every 4 tables. Zola makes rugs, with an opportunity cost of 2 tables per every 3 rugs. Ollie proposes that Kukla give Zola 2 tables in exchange for 2 rugs. What are Kukla's and Zola's reactions? O Neither Kukla nor Zola likes the propoal, O Zola likes the proposal, but Kukla does not. O Kukla likes the proposal, but Zola does not. O Ollie's proposal is not feasible. O Kukla and Zola both like the proposal D Question 23 2 pts For a market to be competitive

Explanation / Answer

Kukla and Zola both like the proposal. As according to the given opportunity cost for Kukla (3 rugs per every 4 tables) she can get 1.5 rugs for 2 tables .But with the offer made now she can get 2 rugs for giving 2 tables.

Given the opportunity cost for Zola ( 2 tables per every 3 rugs ) she must give 3 rugs for getting 2 tables. But with the offer made she can now get 2 tables for giving away only 2 rugs .

So both Kukla and Zola are happy with the offer.

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.