John and Diane are the only two people living on a desert island. They have two sources of food, hunting rabbits and fishing. For each hour John spends hunting, he is able to catch one rabbit. For each hour he spends fishing, he can catch two fish. For each hour Diane spends hunting, she is able to catch two rabbits and for each hour fishing, she can catch two fish. (Assume each person spends 8 hours a day hunting or fishing.)

1. Explain John's comparative advantage and Diane's comparative advantage.
2. Identify the direction of trade if John and Diane decide to engage in exchange.
3. Assume that John and Diane each want to consume 6 rabbits. If no trade takes place, how much will each produce (number of rabbits, number of fish) and what is their combined output? If they engage in trade, what is their potential combined output?