- 1 . =@ 3. Opportunity Cost Eleanor and Kyoko are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer, Eleanor takes 4 hours to brew a gallon of root beer and 2 hours to make a pizza. Kyoko takes 6 hours to brew a gallon of root beer and 4 hours to make a pizza. Eleanor's opportunity cost of making a pizza is W of root beer, and Kyoko's opportunity cost of making a pizza is W of root beer. W hasa n absolute advantage in making pizza, and has a comparative advantage in making pizza. ~ If Eleanor and Kyoko trade foods with each other, W will trade pizza in exchange for root beer. -The.price of pizza can be expressed in terms of gallons of root beer. The highest price at which pizza can be traded that would make both roommates = better off is W _of root beer, and the lowest price that makes both roommates better off is W of root beer per pizza. L e LB 1T Save & Continue N