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John and Joan produce butter and cloth. John produces 8 pounds of butter in one day and 4 meters of cloth in one half-day. Joan
John and Joan produce butter and cloth. John produces 8 pounds of butter in one day and 4 meters of cloth in one half-day. Joan on the other had, produces 10 pounds of butter in one day and 6 meters of cloth in one half-day.
a) determine the opportunity cost of one pound of butter for Joan? For John?
b)Does john and/or Joan have an absolute advantage in production of any good?
c) does John and/or Joan have a comparative advantage in production of any good?
d) should Joan specialize in the production of one of the goods? what about John?
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