1.8. Consider once again the farmer and rancher discussed in the chapter.

a. Suppose that a technological advance makes the farmer better at producing meat, so that he now needs only 2 hours to produce 1 pound of meat.

What is his opportunity cost of meat and potatoes now? Does this alter his comparative advantage?

b. Is the deal that the rancher proposes—3 pounds of meat for 1 pound of potatoes—still good for the farmer? Explain.

c. Propose another deal to which the farmer and rancher might agree now.