Assume that Betty and Ann live on a desert island. With a day's labor they can either catch fish (F) or collect coconuts (C).The individual PPf's are given by the following equations:

Betty: F = 3 - 3C

Ann: F = 6 - 1.5C

(a)Graph the 2 PPFs

(b)Find the opportunity costs for both Betty and Ann for Fish and Coconuts.

(c)Who has comparative advantage in Fish? Why?

(d)Who has comparative advantage in coconuts?Why?

(e)Who has absolute advantage in which product? Why?

(f)Suppose in Autarky they produce

Betty: 1F and 1C

Ann: 1F and 2C

What is the total produced?

(g)If each specializes in the production of the good in which she has comparative advantage, then how much will each produce? What will be the total produced? What will be the gain from specialization?

(h)What will be the range for the terms-of-trade (TOT)?

(i)Draw the social PPF for this society if these are the only two individuals in this society.