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40. Let's say that Andy can produce 30 apples per hour and 60 bananas per hour and Leslie can produce 60 apples per hour and
40. Let's say that Andy can produce 30 apples per hour and 60 bananas per hour and Leslie can produce 60 apples per hour and 60 bananas per hours. Assume that each of them works a 10-hour day. a) Start in autarky, with Andy and Leslie each spending half their time producing apples, half their time producing bananas, and each of them eating all of their own fruit. How much does each one produce? b) What is Andy's comparative advantage? What is Leslie's comparative advantage? c) Now assume they specialize in producing the good which they have a comparative advantage in exclusively and they produce none of the other good. How much do they each produce? d) How much more apples are produced relative to autarky? How many more bananas
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