Example 1 IPPFI Ognortunity Cost, and Comparative Advant_age!: Two people, Joanne and Kelly, can produce either coconuts or bananas. Their production abilities are illustrated in the following table. Assume both of them can work up to 10 hours a day. If they work less than 10 hours, the time left has no value. Assume there is no trade between them. Coconuts/hour Bananas/\"hour Currently Joanne is producing 36 coconuts and 9 bananas, while Kelly is producing 15 coconuts and 10 bananas per day. a.Graph the PPFs for Joanne and Kelly respectively (for one day with 10 hours of work). Draw coconuts (C) on the vertical axis and bananas (B) on the horizontal axis. Assume the PPFs are linear between the points listed in the table. b.Do Joanne and Kelly work efficiently in terms of their utilization of their own resources? Now assume both of them are producing on their PPFs: c.What is the opportunity cost of producing one more coconut for Joanne? d.What is the opportunity cost of producing one more banana for Joanne? e.What is the opportunity cost of producing one more coconut for Kelly? f. What is the opportunity cost of producing one more banana for Kelly? g.Who has the absolute advantage in producing bananas? h.Who has the comparative advantage in producing bananas? Example 2 [Comparative Advantage): Suppose Ann and Drew are doing Biology and Math homework. In one hour, Ann can solve 5 Biology questions or 10 Math questions, or any other combination lying on the line between those two points. In the same amount of time, Drew can solve 10 Biology questions or 15 Math questions, or any other combination lying on the line between those two points. What is the opportunity cost of solving 1 Math question for Ann? What about for Drew? What is the opportunity cost of solving 1 Biology question for Ann? What about for Drew? Who has the absolute advantage in doing Biology homework and Math homework? Suppose they work together. Who will specialize in Math problems and who will specialize in Biology problems? e. If they were to trade with each other, what is the price range (in terms of number of Math problems) acceptable to both Ann and Drew for a Biology question? P-'PP'P