Examine the first diagram showing the monthly production possibility frontier for the Tivoli and the monthly production possibility frontier for the Frivoli.
In A.D. 100 the Frivoli discover a new technique for
a. Which tribe has the comparative advantage in spaghetti production?
b. Which tribe has the comparative advantage in meatball production?
Making meatballs that doubles the quantity of meatballs they can produce each month. Examine the new monthly production possibility frontier for the Frivoli.
c. After the innovation, which tribe now has an absolute advantage in producing meatballs?
d. Which tribe now has an absolute advantage in producing spaghetti?
e. Which has the comparative advantage in meatball production?