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6. The following table provides labour productivity for two individuals, Ann and Bob, in the production of Coconuts and Fish. Coconut Fish Ann 6 12
6. The following table provides labour productivity for two individuals, Ann and Bob, in the production of Coconuts and Fish. Coconut Fish Ann 6 12 Bob 9 18 a. If both individuals allocate their resources evenly in the production of each good, what is the total production of each good? b. Which individual has an absolute advantage in what good? c. What is Ann's opportunity cost of producing Coconut? Fish? d. What is Bob's opportunity cost of producing Coconut? Fish? e. Who has a comparative advantage in producing Coconut? Fish? f. If both individual specialized in the production of the good in which they have a comparative advantage in, what will be the new total production? g. What are the gains from specialization
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