An economy has two workers, Bella and Edward.

Per day of work, Bella can pick 100 apples or 25 bananas, and Edward can pick 50 apples or 50 bananas. Bella and Edward each work 200 days per year. (LO1)

a. Which worker has an absolute advantage in apples? Which has a comparative advantage?
Calculate each worker’s opportunity cost of picking an additional apple.

b. Find the maximum number of each type of fruit that can be picked annually in this economy, assuming that none of the other type of fruit is picked. What is the most of each type that can be picked if each worker fully specializes according to his or her comparative advantage?