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Assume that Steve and Sarah have the same amount of resources and identical technologies. Steve can produce 4 loaves of bread or 8 dozen cookies

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Assume that Steve and Sarah have the same amount of resources and identical technologies. Steve can produce 4 loaves of bread or 8 dozen cookies or any combination per day. Sarah can produce 3 loaves of bread or 4 dozens of cookies or any combination per day. (modified from Colander, 4th Ed.) (f) Is this an input or an output problem? Explain how you know. (g) Create a table showing the above data for each person and the opportunity costs. Show your math. (h) Which person has,an absolute advantage in the production of bread and which has an absolute advantage in the production of cookies? Explain how you determined your answer. (i) Which person has a comparative advantage in the production of bread and which has a comparative advantage in the production of cookies? Explain how you determined your answer. (j) Assume that the two people trade, and that one loaf of bread is exchanged for 1.5 dozens of cookies. Explain why the person that gets cookies will gain from trade

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