What is Tom€™s opportunity cost of producing a racket? What is Abby€™s opportunity cost of a racket? Who has a comparative advantage in producing rackets? Who has a comparative advantage in producing balls?

Figure 3.3 (on below) shows Tom€™s production possibilities and Figure 3.4 (on the next page) shows Abby€™s production possibilities. Tom uses all his resources and produces 2 rackets and 20 balls an hour. Abby uses all her resources and produces 2 rackets and 40 balls an hour.

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FIGURE 3.3 FIGURE 3.4 Chapter Checkpoint Study Plan Problem 7 Chapter Checkpoint Study Plan Problem 7 Balls (per hour) Balls (per hour) 40 80 30 60 20 40 Tom's PPF Abby's PPF 10 20 3 Rackets (per hour) Rackets (per hour)