Answer :
a. Venice's opportunity cost of producing one pound of pasta is 2 bottles of wine. b. Venice's opportunity cost of producing one bottle of wine is 1/2 pound of pasta. c. Florence's opportunity cost of producing one pound of pasta is 0.5 bottle of wine. d. Florence's opportunity cost of producing one bottle of wine is 2 pounds of pasta.
In part a, Venice's opportunity cost of producing one pound of pasta is 2 bottles of wine. This means that if Venice wants to produce one more pound of pasta, they have to give up producing 2 bottles of wine.
In part b, the question asks for Venice's opportunity cost of producing one bottle of wine in terms of pounds of pasta. To find this, we need to take the reciprocal of the opportunity cost of producing one pound of pasta. Since the opportunity cost of producing one pound of pasta is 2 bottles of wine, the opportunity cost of producing one bottle of wine is 1/2 pound of pasta.
Moving on to Florence, in part c, Florence's opportunity cost of producing one pound of pasta is 0.5 bottle of wine. This means that if Florence wants to produce one more pound of pasta, they have to give up producing 0.5 bottle of wine.
In part d, the question asks for Florence's opportunity cost of producing one bottle of wine in terms of pounds of pasta. To find this, we need to take the reciprocal of the opportunity cost of producing one pound of pasta. Since the opportunity cost of producing one pound of pasta is 0.5 bottle of wine, the opportunity cost of producing one bottle of wine is 2 pounds of pasta.
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