Please with number 3

Question 3. [25 points.] Buddy and Will are elves in Santa's workshop. Their task is to produce toy train locomotives and toy train cars so that Santa can deliver toy trains to all the good children. Buddy can make a train car in 1 hour, and it takes him 3 hours to make a locomotive. Will can make a train car in 2 hours, and it takes him 4 hours to make a locomotive. Buddy Will Time to make a toy train car 1 hour 2 hours Time to make a toy locomotive 3 hours 4 hours A complete toy train must have exactly one locomotive and two cars. Each time an elf delivers a complete toy train to Santa, the elf is rewarded with a bottle of maple syrup. The elves want to earn as many bottles of maple syrup as possible. There are 40 hours before Santa's sleigh leaves. The elves do not need to sleep and will work the entire 40 hours. (a) [5 points.] Which elf has an absolute advantage in the production of train cars, and which has an absolute advantage in the production of locomotives? Briefly explain. (b) [5 points.] Which elf has a comparative advantage in the production of train cars, and which has a comparative advantage in the production of locomotives? Briefly explain. (c) [5 points.] If Buddy and Will do not trade tasks with each another, how many complete trains will they each produce in the 40 hours that are avail- able? (show your calculations) (d) [5 points.] If Buddy and Will trade tasks with each another, what is the maximum number of complete trains they can produce together in the 40 hours that are available? (show your calculations) (e) [5 points.] Can trading tasks lead to a Pareto improvement for Buddy and Will (relative to the situation in which they do not trade at all)? If yes, explain how the Pareto improvement occurs. If not, explain why not