2. [15 marks] Two producers, Hosne and Merve, are assumed to produce only purses and wallets. Their production possibilities boundaries before trade are drawn in solid lines. It is assumed that they have the same amount of resources for production. 10 I wallets 10 wallets 9 - 9 - co Hosne's Production Merve's Production Possibilities Frontier Possibilities Frontier + + + + 9 10 purses 3 4 6 9 10 purses a. Hosne's opportunity cost of one purse is and Merve's opportunity cost of one purse is b. Hosne has an absolute advantage in the production of and Merve has an absolute advantage in the production of c. Hosne has a comparative advantage in the production of Merve has a comparative advantage in the production of Now the two producers start to trade. d. Who exports purses? Who exports wallets