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3. Mitch and Angela are castaways on an island in the Pacific. Angela can gather 30 coconuts or catch 40 fish per day. Mitch can
3. Mitch and Angela are castaways on an island in the Pacific. Angela can gather 30 coconuts or catch 40 fish per day. Mitch can gather 20 coconuts or catch 10 fish per day. Assume that they can divide their days between the two activities and a linear relationship holds. a. Complete the following table on opportunity costs. Opportunity cost of Opportunity Cost 1 coconut of 1 fish Mitch Angela b. Who has the comparative advantage in coconuts? Briefly explain. C. Who has the comparative advantage in fish? Briefly explain. d. Propose a mutually beneficial trade. e. Using production possibilities curves, demonstrate that both Mitch and Angela will benefit from specialization and trade at the rate proposed in question d
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