(Solved): please show using the new-old formula,, thank you. 1. In the ancient country of Roma, only two goods ...

1. In the ancient country of Roma, only two goods, spaghetti and meatballs, are produced. There are two tribes in Roma, the Tivoli and the Frivoli. By themselves, the Tivoli each month can produce either 25 pounds of spaghetti and no meatballs, or 50 pounds of meatballs and no spaghetti, or any combination in between. The Frivoli, by themselves, each month can produce 40 pounds of spaghetti and no meatballs, or 30 pounds of meatballs and no spaghetti, or any combination in between. a. Assume that all production possibility frontiers are straight lines. Draw one diagram showing the monthly production possibility frontier for the Tivoli and a second diagram showing the monthly production possibility frontier for the Frivoli. Put spaghetti on the \( y \)-axis and meatballs on the \( x \)-axis. b. Which tribe has the comparative advantage in spaghetti production? In meatball production? \( \Rightarrow \) (new-old) / (new - old) In A.D. 100, the Frivoli discover a new technique for making meatballs that doubles the quantity of meatballs they can produce each month. c. Draw the new monthly production possibility frontier for the Frivoli tribe. The Frivoli, by themselves, each month can produce 40 pounds of spaghetti and no meatballs, or 60 pounds of meatballs and no spaghetti, or any combination in between. d. After the innovation, which tribe now has an absolute advantage in producing meatballs? In producing spaghetti? Which has the comparative advantage in meatball production? In spaghetti production?