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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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